The endless machinations over the Cyprus debt banking crisis are completely unnecessary and could be solved with three simple steps, a leading financial specialist in London has said.
Speaking to the New Observer on condition of anonymity, the financial specialist—who works in the banking sector—said that the hullabaloo over the “debt restructuring” process was deliberately hiding the original cause of the crisis—namely, the banking sector’s behavior.
“The media is ignoring the fact that it is the banks themselves who are the cause of the debt crisis,” he said.
“They are the ones who have recklessly gambled with investors’ money, and have lost it speculating on the markets, particularly in the US subprime mortgage swindle.
“The answer to the ‘debt crisis’ is simple, and consists of three steps.
“Firstly, the banks—and this is in particular reference to the ones in Cyprus, but applicable to almost all banks, everywhere—should be forced to liquidate themselves and use their extensive assets to pay back all depositors their cash.
“Secondly, the directors and responsible people in those banks should be held criminally liable for their reckless behavior, and prosecuted in the courts.
“Thirdly, the government (or governments) should form a state-controlled bank which is under strict supervision and is prevented by law from engaging in market speculation with depositors’ money.
“This is the core of the problem: they are currently trying to force the depositors, who are not responsible for the current crisis, to pick up the tab for the wrongdoing of others.”
Finally, the financial expert said,”the current crop of idiots sitting in parliaments around Europe and America need to be thrown out. In their place, people who understand that economies need to be based on manufacturing, and not speculation, need to be elected.”