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Cyprus Bailout a Game Changer?

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  • Description

    Cumberland Advisors chief investment officer David Kotok on the fallout from the Cyprus bailout.

  • Duration 4:59
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-- a key condition of Cyprus is thirteen billion dollar bailout proposal is a tax on bank deposits and that is sparking outrage and fear.

That there's going to be a run on the banks their -- -- darkest chairman and chief investment officer Cumberland advisors need says the attendant deal.

Has already dealt a serious -- the Euro -- fragile banking system regardless.

Of what the outcome is when they reopen the bank's David joins us on the phone from Paris now.

And I -- why do you think that this is such a big deal -- even.

Well at this finance ministers.

That decision has already now -- -- down to the cat is out of the bag.

Why don't you open the door to taxing at the positive when you have a liquidity crisis you could never close the door again.

And we will see how much run -- there will be.

On -- -- banks when they finally get them open.

Even if you were taxed at 15%.

Of your deposit you had a million Euro in the bank.

And they took a 150000.

Euro away from -- what would you do look the other eight.

Already fifty no I would I would do yeah I am I mean the other amazing thing is that they looked around they had to raise six billion dollars a -- figure out where -- we're gonna get it from.

They had this bright idea to go tax deposits in the bank but 40% of those deposits are from non residents anyway.

So you're going to scare out anyone I mean -- they're not --

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