Tuesday, 19 March 2013

Government theft in Cyprus – what it means for your money

The article serves as an alert to Malaysians.

From "Money Morning" with the title of "Government theft in Cyprus – what it means for your money.":

Here’s a scenario for you.

You wake up one morning. Over the radio, you hear that the government has said that all the banks are bust. Everyone is going to have to sacrifice 10% of their savings to bail the system out. It’s the only solution.

Now, you’ve only got £20,000 in the bank. You know up to £85,000 is insured under the nation’s deposit protection scheme. So you think you’re covered.

Not so. Turns out the 10% fee is a tax. A ‘wealth’ tax, if you like.

So you lose £2,000 of your savings anyway, even although you thought you were playing by the rules.

Sound unfair? I’m sure the residents of Cyprus would agree with you. Because that’s exactly what happened to them this weekend.

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