Took some time from politics and economics and wrote about basketball. You can find me at The Casual Hoya
Monday, March 18, 2013
http://nyti.ms/1317mHM The decision of the ECB and Euro Zone leaders to "tax" deposits in Cypriot banks is a phenomenally bad decision that must cause a giant run on their banks and weaken the entire Euro Zone. Part of the problem that places like Cyprus struggle with are constant capital outflows from current account deficits. Those out flows are made for with inflows from Russians and other convinced of Cypriot stability. So much for that. It is inconceivable that this haircut of depositors could work. Should have just nationalized the banks.