Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
This is just insanity. What happened to seniority? Equity is wiped out first, then unsecured bonds, then senior bonds.

What happened to rights issues? SOP when a bank is in trouble is to force it to increase its equity by having the shareholders inject capital. If this isn't possible, the bank is instead nationalised and the capital supplied by the state. If the state can't afford it, the money is borrowed from the Central Bank. Instead of injecting cash, the ECB instead blackmailed Cyprus. What is the ECB up to?

Why would they rather undermine deposit insurance(!!!!!), the one thing that helps against lethal bank runs? This is bound to provoke a massive cash surge from the periphery into the core, or out of the Eurozone entirely.

Madness. Madness! If people had been told that Eurozone membership equaled the arbitrary elimination of deposit insurance, not a single refendum would have resulted in Euro membership.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Sun Mar 17th, 2013 at 09:53:53 AM EST

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