Skip to comments.Too soon to draw financial-stability lessons from Cyprus: U.S. official
Posted on 03/26/2013 3:51:59 PM PDT by mdittmar
NEW YORK (Reuters) - A top U.S. regulator said on Tuesday that it was too soon to draw conclusions on financial stability from the bailout of Cyprus, which rattled markets globally over the last week.
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Yeah, we need some more time to come up with a reason why banks squander their customers’ money.
Too soon to draw financial-stability lessons from Cyprus: U.S. official
Ah-hah! That means it's definitely not too soon to draw financial stability lessons from Cyprus.
Fortunately, it's not too hard to learn how to read feral government press releases.
It will happen again to multiple nations within the next few months.
To quote today's “The Telegraph”: “Jeroen Dijsselbloem, the Dutch chairman of the eurozone, told the FT and Reuters that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe.”
There has been, never was, nor ever will be any unifying concept for the European Union except a degree of hatred for the US - how dare we be better than our great grandparents! Because of this total, long term, lack of a unifying concept none of the nation states will voluntarily bite the bullet to save the common currency.
Less than 5 months ago the European financial markets were discussing the Greek “haircut” That haircut involved investors. Guess there was too much political pressure (You do that again and I'll support your opponent at the next election) to do that again.
Greek financial crises in November 2012, financial crises in Cyprus March 2013. Want to take bets on the next financial crises in Europe? July 2013 looks like a good time and Italy looks like a safe bet. Although August and France also look interesting.
It is not the banks that have failed. It is the currency that has failed.