Could A Wealth Tax Solve the Problem of Government Debt?

A recent IMF report suggests that this man's enormous wealth might help resolve the government's debt problem. [Credit: NY Post]

A recent IMF report suggests that this man’s enormous wealth might help resolve the government’s debt problem. [Credit: NY Post]

The International Monetary Fund (IMF) recently reported that European governments could reduce their debt back to pre-Great Recession levels by confiscating 10 percent of the wealth held by their richest citizens. IMF isn’t recommending that, of course.

They’re just sayin’. Continue reading

How’s That Cyprus “Bail-In” Working Out?

The Cyprus "bail-in" is no more popular today than when it was hatched last spring. [Credit: CNNMoney.com]

The Cyprus “bail-in” is no more popular today than when it was hatched last spring. [Credit: CNNMoney.com]

You may remember Cyprus, the Mediterranean island that grabbed international headlines last March when its government was compelled by European authorities to seize money that individuals and businesses had deposited in the country’s two largest banks.

The “bail-in” of Cypriot banks, so called because it requires people who have deposited their money in failing banks to help save those banks by forfeiting some of their deposits, is a portent of bank rescues to come.  Continue reading