Tuesday, March 19, 2013

Just what the hell is going on?

This whole Cypriot bailout story is plain insane (haircutting citizens, Russian money laundering, etc.). And it sounds like a terrible idea. Here is some commentary:

Of course Prof. Krugman has a couple of comments on the situation, here and here.

But so far my favorite comment has been by Duncan Black, as usual:
"Always dangerous to wish for revolutions, but people in Spain and Italy and Greece really should consider pulling all of their money out of the banks, both as a precaution and as protest. If a bank run happens, the banks will just be bailed out again, as magically more free money will appear. For the banks."