EagleTribune.com, North Andover, MA


March 24, 2013


“We loiter in winter while it is already spring. In a pleasant spring morning, all men’s sins are forgiven.”

Henry David Thoreau

At the beginning of this week, I was loitering: The snow was still falling, my golden daffodils were buried, it was too cold to be called “pleasant.” Furthermore, too many sins have piled up since Thoreau was chronicling the advent of spring at Walden Pond. Forgiven or not by a loving God, we are going to have to pay for them.

One word, as the sun crossed the equator: Cyprus.

A group of Eurozone finance ministers in Brussels agreed March 16 to give Cyprus’ government a $13 billion bailout, but demanded that depositors in the island’s banks pay between 6.75 and 9.9 percent of their bank deposits as their share of the bailout cost.

At first that didn’t seem like much; as I did my own taxes last weekend, I had to add my interest to my other income and added under $200 to my taxes. But wait! — the proposed Cyprus tax isn’t on the interest, it’s on the entire amount of money in the account! And the government, on behalf of the European central bank, would seize it directly from the account. The Cyprus parliament voted on Tuesday not to support this, but if someone doesn’t come up with another plan, the country will not be able to pay its bills.

Imagine being told that the government is going directly to your bank account and immediately, electronically, extracting 7 percent of your checking and savings accounts. You might be tempted to get your money out of the bank before the government gets there, though where you’d put it I can’t imagine. As Cypriots considered this defensive action, the government closed the banks so they couldn’t withdraw anything.

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