MARKET FLASH:

"It seems the donkey is laughing, but he instead is braying (l'asino sembra ridere ma in realtà raglia)": si veda sotto "1927-1933: Pompous Prognosticators" per avere la conferma che la storia non si ripete ma fà la rima.


lunedì 25 marzo 2013

European economic policy leading to bank run ?


A correspondant of mine writes me the following short message:
"If saving tiny Cyprus is such a mess god help us if Europe needs to save anyone bigger. Remember, Cyprus' banks went down because of the Greek bailout.  They held a lot of Greek bonds that took a haircut.  Plenty of sinners in this drama and few saints."  
Few words about a clear-cutting thought.
Now, anyway, its hard not believe in a bank run as soon as Cypriot banks will reopen: when you ignite the fire too close to gasoline then is harder to exstinguish it. They couldn't manage worse this crisis as raiding Cypriot accounts will not save the banking system while bank run probability are at the highest in Cyprus and growing outside: look at "Dutch Finance Minister Jeroen Dijsselbloem helped tank the markets midday when he said Cyprus was a 'template' " (great idea!!)

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