The Troika (European Commission, European Central Bank and the International Monetary Fund) sponsored Cyprus Confiscation is now a template for bank failures. The new lingo is "bail-in" whereby a depositor in a bank is now considered a shareholder and will be flushed in a bank rescue package.
"European politicians will take the "easy option" of taking money from the rich rather than raising taxes and cutting spending to deal with the continent's debt problem, Lars Christensen, the head of Saxo Bank, said.
Asked if the raid on uninsured savings in Cyprus would be repeated, he told City AM: "There will be future bail-ins [loss of deposits] and other types of confiscation of wealth in the eurozone, without a doubt.
"There's no other realistic way forward if politicians continue to fail to deal with the basic indebtedness problem across Europe. They will either have to raise taxes and cut spending, or politicians will take the easier route and take money from the rich...."
Read more:
http://www.telegraph.co....s-Lars-Christensen.html
Rest easy, the Troika is a blind-folded monkey at the driver's seat.
Ex-ECB executive board member Lorenzo Bini Smaghi summed up the meetings. “We don’t fully understand what is happening in advanced economies,” he said
Read more:
http://blogs.reuters.com...nomics-of-flying-blind/