Monday, March 18, 2013

Jefferies strategist: 'This Is A Nuclear War On Savings And Wealth'

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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