Originally Posted by baja
There are levels of risk as you know. The deregulation that has take place since the Clinton years has created an opportunity for catastrophic collapse. We are dealing in insanity with these derivatives. The value of the derivatives market is purportedly a hundred times that of all the wealth in the world, that's insanity. Look at Iceland they refused to accept the debt these banks were attempting to heap on them. They just said no and what happened, they are now the fastest growing economy in the world. This debt is not the debt of the Cypriot account holders. They are being robbed to pay a debt that is not theirs.
What you are seeing is a broken global fiat money system that is frantically being patched and propped up. They are just buying time on someone else's dime.
One of the main Cypriot bank problems are massive Greek bond holdings.
Again, this is offshore banking, always high risk and returns, the depositors knew that and understood if the bank goes, so does their cash.
Besides, much of the deposits are suspected Russian mob money being laundered.