the other germanic nihilists trying to undermine
the Euro to increase their exports.
They actually either want to kill the Euro, or rob
their working populace's bank accounts, or both.
either way, they're getting scary. People are so
shocked, and don't believe it could happen to them,
that they'll probably ignore the warning
signs until it's too late.
Checkit: bizness insider
Instead Of Doing
His Job, Jeroen Dijsselbloem Has Given Us A Glimpse Of The Euro 'End Game'
Matthew Boesler | Mar. 26, 2013, 4:55 PM | 21,262 | 62
If you've been
following the Cyprus bailout story at all, you're probably familiar by now with
Jeroen Dijsselbloem, the Dutch Finance Minister who became President of the
Eurogroup of euro zone finance ministers in January.
As President of the
Eurogroup, Dijsselbloem has one extremely important job: communicating to the
public the decisions taken by the group. After all, he is the figurehead.
And for all of the
fear that the Cyprus bank bailout deal – which, per the Eurogroup's wishes, forces haircuts on
uninsured depositors – has caused elsewhere in Europe in recent days, Dijsselbloem really hasn't
been doing too well on that front.
It's important for European leaders to portray Cyprus as
a "special case." Otherwise, depositors at other banks in Europe
could get spooked, thinking they might be next to take a hit. The same goes for
bank bondholders.
So, European leaders have done their best to stress that
the Cypriot bank bailout is just that: a special case.
That is, except for Dijsselbloem, who has basically spent
the first two days of this week, following the inking of the Cyprus deal on
Sunday night, going on and on about how this is not, in fact, a special case.
Yesterday, in a bombshell interview with Reuters and the
FT, Dijsselbloem essentially said Europeans can count on a similar fate for
uninsured deposits elsewhere in the euro zone if their banking systems need to
be restructured in the future.
"If there is a risk in a bank, our first question
should be 'Okay, what are you in the bank going to do about that? What can you
do to recapitalise yourself?'" said Dijsselbloem in the interview.
"If the bank can't do it, then we'll talk to the shareholders and the
bondholders, we'll ask them to contribute in recapitalising the bank, and if
necessary the uninsured deposit holders."
Yikes.
FT Alphaville editor Paul
Murphy called for Dijsselbloem's firing for making those comments. Several
others have lashed out at Dijsselbloem for his apparent ineptitude.
The market reaction (bank stocks tanked) even caused the
Eurogroup to issue a two-sentence clarification of what Dijsselbloem said.
However, the Eurogroup
statement didn't really refute anything he actually said. Instead, it
seemed to be an attempt to combat the use of the word "template" in
describing the Cyprus deal, which is how Reuters played it in the lede.
And when you look at the full transcript of the interview,
which the FT published online today, it's clear that Dijsselbloem absolutely meant what he said.
In fact, Dijsselbloem's comments seemed to anticipate and
perhaps even invite the negative market reaction that ensued and later caused
the Eurogroup to issue a clarification.
...
