The Ruling Class New Normal

Collectivist ministers never take enough
Frustration over a delayed bailout turned to incredulity and anger in Cyprus on Saturday as islanders woke up to news that savers would be footing part of the bill to avert national bankruptcy.

In a radical departure from previous euro zone rescues for Greece, Ireland, Portugal and Spain, finance ministers struck a deal to lend the indebted island 10 billion euros ($13 billion). But in return, depositors would have to forfeit up to 10 percent of their savings.

Small queues of people gathered at cash machines across the island to withdraw money on Saturday, while co-operative credit societies had to shut to prevent a run on deposits.

The levy must be ratified by parliament before banks open on Tuesday, since Monday is a public holiday.

"My initial reaction is one of shock," said Nicholas Papadopoulos, head of parliament's financial affairs committee. "This decision is much worse than what we expected and contrary to what the government was assuring us, right up until last night," he told Reuters.
(full story at reuters.com)

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