by Jerome a Paris
Tue Mar 19th, 2013 at 04:55:46 AM EST
Writing in El Pais, economist Jose Carlos Diez calls the Cyprus bail-in "an economic aberration" which "confirms there's no intelligent life in Europe". Paraphrasing Einstein, Diez says "two things are infinite: the cost of corralito and human stupidity”. The expression Corralito comes from Argentina, where the government imposed Draconian measures in 2001 to stop a bank run. He also makes the point that the only country that put bondholders ahead of depositors in the 1980s was Romania, and Ceausescu ended up before a firing squad.
Via Eurointelligence (by email). Use as a new Cyprus bail-in thread.