The decision of the government in Cyprus to simply take money out of
people's bank accounts there sent shock waves around the world. People
far removed from that small island nation had to wonder: "Can this
happen here?"
The economic repercussions of having people feel that their money is not safe in banks can be catastrophic. Banks are not just warehouses where money can be stored. They are crucial institutions for gathering individually modest amounts of money from millions of people and transferring that money to strangers whom those people would not directly entrust it to.
Multi-billion dollar corporations, whose economies of scale can bring down the prices of goods and services -- thereby raising our standard of living -- are seldom financed by a few billionaires.
Read more: http://townhall.com/columnists/thomassowell/2013/03/26/can-it-happen-here-n1548498
The economic repercussions of having people feel that their money is not safe in banks can be catastrophic. Banks are not just warehouses where money can be stored. They are crucial institutions for gathering individually modest amounts of money from millions of people and transferring that money to strangers whom those people would not directly entrust it to.
Multi-billion dollar corporations, whose economies of scale can bring down the prices of goods and services -- thereby raising our standard of living -- are seldom financed by a few billionaires.
Read more: http://townhall.com/columnists/thomassowell/2013/03/26/can-it-happen-here-n1548498
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