A Day of Infamy: the Cyprus Bank Robbery.

The Great Cyprus bank robbery happened on the 30th of this March. Bank deposits larger than 100,000 Euros were officially seized. Former owners received class A shares for a bankrupt bank, 22.5% of the money is frozen for future purposes and 30% is just frozen. This represents a 60% loss of capital and maybe the loss of another 30% ultimately.

Remember when holders of Greek bonds were asked to take a hair cut? This was it.Needless to say, this is very deflationary.