Eurozone Chief: savers will be raided to save euro in future crises

Discussion in 'Wall St. News' started by spencer, Mar 26, 2013.

  1. spencer


    Of course, this won't increase the chance of a bank run in Spain and Italy.

    The new policy will alarm hundreds of thousands of British expatriates who live and have transferred their savings, proceeds from house sales and other assets to eurozone bank accounts in countries such as France, Spain and Italy.

    The euro fell on global markets after Jeroen Dijsselbloem, the Dutch chairman of the eurozone, announced that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe.

    "If there is a risk in a bank, our first question should be 'Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself?'," he said.

    "If the bank can't do it, then we'll talk to the shareholders and the bondholders, we'll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders."

    Ditching a three-year-old policy of protecting senior bondholders and large depositors, over €100,000, in banks, Mr Dijsselbloem argued that the lack of market contagion surrounding Cyprus showed that private investors could now be hit to pay for bad banking debts.
  2. Q: which banks in Europe are safe?
    A: Sperm banks!
  3. In case you all haven't noticed, the world is not a "savers" world; it's a producer and consumer world. Your "saving" is only hurting the economy. Ever heard of the paradox of thrift?
  4. True, definitely some sticky deposits, and liquidity's not an issue.
  5. How could that be?
    CNBC has been telling me europe is fixed for the past 6 months.

    This market blowup is going to be pretty funny. Anybody who is not selling stock right now deserves to lose all their money.
  6. achilles28


    Crony capitalism. Picking and choosing winners.
  7. He clarified later that that he was being misinterpreted and that some of what is above is not at all what he meant to convey and it is certainly not the new policy.

    He is new on the job and not as careful as he should be in talking to the press.
  8. Visaria


    Sad day when someone says "saving" is hurting the economy :(

    Go read some Henry Hazlitt.
  9. clacy


    Yep, the rookie made a huge blunder when he was honest about their intentions.