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Yes, what about bailing in? My plan C for Cyprus:

  • Uninsured depositors in the two banks the ECB claims are bankrupt receive equity in exchange for their deposits.
  • Insured depositors in the two banks the ECB claims are bankrupt receive Cyprus government consols, redeemable at par in payment of Cypriot government taxes.
  • Capital controls are instituted in the form of an exit tax equal to Cyprus' sovereign CDS spread on the day of the capital outflow.


guaranteed to evoke a violent reaction from police is to challenge their right to "define the situation." --- David Graeber citing Marc Cooper
by Carrie (migeru at eurotrib dot com) on Thu Mar 21st, 2013 at 03:34:26 PM EST
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