3 ms·
This seems pretty morally hazardous to me. It penalizes good savers and lets debtors go scot-free. The message it's sending is that taking on an excessive loan
by arbuge 14y ago
This seems pretty morally hazardous to me. It penalizes good savers and lets debtors go scot-free. The message it's sending is that taking on an excessive loan or mortgage is fine; on the other hand you could be screwed if you live within your means and save up for a rainy day.
I'm not familiar with Cyprus' particular situation but I'm guessing that if they need a bailout, excessive spending and debt are factors contributing to that problem to begin with...
- mrich 14y agoYou have to consider that this has been going on all the time through money-printing and devaluation of the major currencies over the past years. Savers get screwed, debts are devalued. I would say this step is more transparent in that regard.
- tomp 14y agoSavers are not good for the economy. People should either spend the money they earn, or invest it. Economically speaking, of course.
- coldtea 14y agoYou mean "capitalistic economy" speaking. Which is not the only kind of economy known to man. I'm not taking about communism either. Lots of systems have been both proposed and used effectively. Until 15th century (or even 2-3 centuries later) there wasn't even capitalism proper.
- Evbn 14y agoYou are referring to "cash savers under the mattress". Putting money in a bank is investing.
- eru 14y agoWhat's the difference between saving and investing?
- coldtea 14y agoIn investing you SPEND your money. If you're conservative in your investment you'll get them back. If you're lucky, you will get more than you put in. If you are unlucky, you might lose it all.
- eru 14y agoWhat do you think banks do with your money? They certainly do not keep it in a vault. Hint: bank runs are possible.
- coldtea 14y ago>What do you think banks do with your money? They certainly do not keep it in a vault. Hint: bank runs are possible. No matter what they do with your money, they are expected to keep it as it was, at least nominally (maybe with a little interest). Bank runs and bank defaults can be possible but are far far far far rarer than yourself investing and losing your money. So your argument is like: "You think chainsaw-tied-on-your-head-skiing is dangerous and you'd rather stay at home? Do you know how many people die at their homes?".
- csomar 14y agoReally? These savers are not saving the money in Gold coins under their mattresses. They are holding it in a bank in EUR. The bank will not just hold the money, it'll invest it (either by loans or direct investment). The savers are rewarded a little (always positive) percentage of their money that barely covers inflation.
- tomjen3 14y agoYou are wrong. Money saved = equals money invested. Or it used to. With this braindeath concept people will be more likely to burry their stuff in the back yard.
- Evbn 14y agoUS did the same thing. People who paid their mortgages bailed out people who got free houses (which they then rented out under the table)
- Evbn 14y agoIs "scot-free" an offensive term in Ireland?