Peter Schiff appeared on CNBC this afternoon to explain why the United States is not immune to the problems Cyprus is experiencing.
“Because we have this deposit insurance, American depositors don’t care how reckless their banks are, and the banks don’t care, because the depositors don’t care. So it’s a terrible system, and eventually it is going to implode. People who have money on deposit in US banks are going to take huge losses one way or another. Either they’re going to lose their deposits, or their deposits are going to lose value because of all the inflation that is going to have to be created to bail out the banks.”