Keen "Risk-Off" Trader Mentality Monday Morning
by Jim Wyckoff
Monday, March 18--Jim Wyckoff's Morning Web Log
* LATEST MARKET DEVELOPMENTS *
There has been a new twist to the European Union sovereign debt crisis. Cyprus is in the spotlight to start the new trading week. It appears Cypriot officials are considering taxing savings accounts in their domestic banks as a part of an overall banking bailout plan with the European Central Bank and the International Monetary Fund. That, in turn, prompted fears other financially troubled nations in the EU could do the same at some point. The Cyprus parliament was set to vote on the new measures Monday, but that vote was reportedly rescheduled for Tuesday. This has not only infuriated Cypriots with savings accounts, but also raised fears of a "run" on those banks in the other economically troubled EU countries.
Outright confiscation of money seems a nifty idea to totalitarian politicians. "If they have money, we'll just steal it and give it to the people who vote for us" is the concept -- just be sure to call it tax and not stealing. Overspending politicians are always corrupt.