Liban : l’urgence financière et comment y faire face
What is to be done - An-Nahar English
▻https://en.annahar.com/article/1057680-what-is-to-be-done
▻https://s.annahar.digital/storage/attachments/1058/100015_937508_large.jpeg
What about the depositors who earned all this phantom interest? You can call it a haircut, or an exit tax, or a deferred tax, or whatever you want, but that has to be part of the process of cleansing this Ponzi Scheme they’ve been running.
A guy with $10 million 10 years ago, at 12% interest, has $31 million today. A haircut of 50% puts him at $16 million. It wouldn’t be an enjoyable experience, but not the end of the world either, to help save his country. It would be equivalent to earning 5% annually (which is the market rate in the real world) instead of 12%, and with no loss of any of his initial investment. For those of you who might have a problem with this plan, wake the f### up. The haircut is happening anyway because a chunk of your money’s already gone. The only thing we’re doing is recognizing the loss and determining how far down to go, meaning at what level of account balance to stop the hit? $1 million? $500,000? $100,000? $10,000? Do you really want the little guy with $10,000 who earned 4% to subsidize the guy with $20 million who earned 25%? When banks open eventually, probably around November 4, they’ll have a very bad day, as crowds scramble to pull their money. Is it viable to prevent the little guy from withdrawing his measly savings, while the big guy calls the branch manager or regional manager and applies a wasta to give him an exemption to transfer his money to Luxembourg? With 2 million people in the streets ready to eat you alive, do you really want to go there?