NewburyportNews.com, Newburyport, MA

Opinion

March 23, 2013

Anderson: Opening a Pandora's box in Cyprus

“We loiter in winter while it is already spring. In a pleasant spring morning, all men’s sins are forgiven.”

— Henry David Thoreau

As I write this, I’m loitering: The snow is still falling, my golden daffodils are buried, it’s too cold to be called “pleasant.” Furthermore, too many sins have piled up since Thoreau was chronicling the advent of spring at Walden Pond. Forgiven or not by a loving God, we are going to have to pay for them.

One word, as the sun crosses the equator: Cyprus.

A group of Eurozone finance ministers in Brussels agreed last Saturday to give Cyprus’ government a $13 billion bailout, but demanded that depositors in the island’s banks pay between 6.75 and 9.9 percent of their bank deposits as their share of the bailout cost.

At first, that didn’t seem like much; as I did my own taxes last weekend, I had to add my interest to my other income and under $200 to my taxes. But wait!: The proposed Cyprus tax isn’t on the interest, it’s on the entire amount of money in the account! And the government, on behalf of the European central bank, would seize it directly. The Cyprus Parliament has to vote on this plan, but if it’s rejected, the country will not be able to pay its bills, will financially collapse.

Imagine being told that the government is going directly to your bank account and immediately, electronically, extracting 7 percent of your checking and savings accounts. You might be tempted to get your money out of the bank before the government gets there, though where you’d put it, I can’t imagine. As Cypriots considered this defensive action, the government closed the banks so they couldn’t withdraw anything.

Meanwhile, as depositors in other debt-ridden European countries became concerned, investors everywhere began to worry about runs on those nations’ banks.

Text Only | Photo Reprints

NDN Video
Famous Internet Cats Help Big Cause With Viral Video Raw: Obama Gets Hug From Special Olympian Snoop Dogg Narrating Animal Footage Is Perfect Tigers Acquire David Price - @TheBuzzeronFOX Russell Brand Slams Sean Hannity Over Gaza Conflict Segment Chapter Two: Composing for a film in retirement Woman's Dive Goes Terribly Wrong Brian Williams Reports on Daughter Allison Williams' 'Peter Pan' Casting News Did Jimmy Fallon Look Up Heidi Klum's Dress? What Drama? Miranda Kerr Poses Topless Plane crashes in San Diego Costco parking lot Justin Bieber Takes To Instagram To Diss Orlando Bloom You Won't Believe the Celeb Cameos in "Sharknado 2" Pitch Invading Morons Cause Chaos - @TheBuzzeronFOX Orlando Bloom 'Takes a Swing' at Justin Bieber In Ibiza Sadie Doesn't Want Her Brother to Grow Up "Maxim" Hotness! See Jessica Alba's Sizzling Spread Two women barely avoid being hit by train Broken Water Main Floods UCLA Orlando Bloom and Justin Bieber Reportedly Came To Blows In Ibiza
Special Features
NRA Waterfront Plans