Though we do not know the final numbers, customers with more $128,000 in Cypriot banks will be lucky to get 40% of anything over that amount. But is that actually an injustice? Perhaps not. Indeed, it’s probably a subsidy. But we could only know for sure if these bankrupt, fractional-reserve institutions (to repeat myself) were allowed to go out of existence–no bailouts of other people’s money–with their creditors getting whatever is left over, as in a normal bankruptcy proceeding. That remaining amount might be zero, and certainly less than 40%. Note that depositors do not own their deposits. They have, … Continue reading Are Cypriots Being Robbed?