John Ransom
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Oh, my gosh; what a great idea: Does Obama even KNOW that he can tax Russian millionaires and billionaires?

Just wait until he finds this new method of taxing and spending. Think of all the bad ideas we can fund with these new “revenues.” 

The European Union and Cyprus teamed up over the weekend to come up with a revolutionary way to destroy confidence in the banking system.

Confiscate the biggest depositors’ money in the country’s largest bank, kill the second largest bank- and just make sure that you only give Cyprus enough money to ensure a second- and third- crisis is in the offing.   

“If anything,” writes the Irish Independent, “the situation is more troubling than a week ago; with the bizarre idea that depositors in one bank should be levied more heavily than in others; that at least one bank would be wound up; and that there would be restrictions on the movement of money in what is supposed to be a monetary union.”

The EU plan makes the USA’s bank bailout- known as TARP, but pronounced C-R–A-P- look like the American plan was run on the good intentions of a local chapter of the 4H Club. 

Last week an unlikely group of people- liberals and conservatives- banded together to denounce the idea of “saving” the Cypriot banking system by one-time confiscations- confiscations disguised as a tax- of depositors’ money.

The European Union proposed to lend Cyprus 10 billion euros that, in part, would be paid back by a one-time levy on bank deposits regardless of size of account and regardless of nationality of account holder. The plan was just another stunning example of how the European Union and the global banking  “Group-Think” got us into the mess to begin with. 

The cure in saving the banking system here, in other words, was to be much worse than the disease of letting the system fail.  

“It’s as if the Europeans are holding up a neon sign, written in Greek and Italian, saying ‘time to stage a run on your banks!’” wrote Paul Krugman, the self-appointed Conscience for Liberals, about the EU bailout plan.

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John Ransom

John Ransom is the Finance Editor for Townhall Finance.