Friday, 28 June 2013

EU bank bailout deal will fail

By Patrick Barron
Re: EU bank bailout deal

This deal almost ensures that depositors of funds greater than 100,000 euros will lose everything when the inevitable bank failures start cascading across Europe.  There are provisions for exceptions, so it is possible that the ECB will simply print more money.   For politically powerful banks and nations, this provision may be invoked.  Anyone who thinks that the same rules will apply EU-wide needs a crash lesson in real world politics.  It's one thing to throw the Cypriots under the bus and another for the French.

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