All Cyprus banks will remain closed until Thursday, having been shut since 15 March. There is a real risk of collapse for the country’s banking system, which has gambled recklessly with both small savings and “money of uncertain provenance”. And it is a cardinal principle of the current global economy that the financial system must be protected at all costs.
It is tempting to ask, “Why not just let it crash?” But the obvious answer is: because it would be grossly irresponsible. Workers’ savings would be destroyed, and homes would be repossessed. It would accelerate a tremendous economic crisis not just in Cyprus but in much of Europe, which would destroy living standards.… Seguir leyendo »