Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
The Botching of the Cyprus Bailout: Worse Than Lehman Brothers - Forbes

Although they had years to consider their options (Cyprus's problems are closely related to those of Greece and have long been almost as obvious), they have opted for a "solution" that amounts to probably the single most inexplicably irresponsible decision in banking supervision in the advanced world since the 1930s.

As my colleague Tim Worstall has pointed out in a well argued contribution yesterday, they have weakened - perhaps catastrophically - the principal pillar sustaining modern banking. This pillar is deposit insurance. Ordinary savers who had received a solemn assurance that deposits up to 100,000 euros were safe are now being asked to take a haircut. This raises questions about deposit insurance throughout the EU and invites runs on banks not only in the most "financially-challenged" nations such as Greece and Spain but even in Italy and France.

by Metatone (metatone [a|t] gmail (dot) com) on Sun Mar 17th, 2013 at 01:31:40 PM EST
In Neo-Classical Economics there are no such things as Feedback Loops.  Thus there are no such things as Cascade Failures.  

Classic case of Cognitive Capture aka "inattentive blindness."

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Sun Mar 17th, 2013 at 02:54:06 PM EST
[ Parent ]

Display:

Top Diaries

Impeachment gets real

by ARGeezer - Jan 17
23 comments

A Final Warning

by Oui - Jan 10
112 comments

Environment Anarchists

by Oui - Jan 13
4 comments

More Spanish repression

by IdiotSavant - Jan 6
8 comments

Occasional Series