From BI: Jefferies strategist David Zervos is his typically
restrained self in his latest note on the Cyprus bailout, which involved taxing
all bank depositors in a one-off confiscation:
“What happened to Cyprus on Friday evening was one of the
most significant developments in the Eurozone since the Greek election last
summer. To tax the bank deposits of savers sends an ominous message to the
entire global investment community. All of us should really take a moment to
consider what the governments of Europe have done. To be clear, they initiated
a surprise assault on the precautionary savings of their own people.
Such a move should send shock waves across the entire
population of the developed world. This was not a Bernanke style slow moving
financial repression against risk free savings that is meant to stir up animal
spirits and force risk taking. This is a nuclear war on savings and wealth …
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