[Re: Why capital controls are an economic and political disgrace, yesterday]
The Eurozone deposit guarantee is worth nothing. First, there is no Europe-wide fund to back it up. It is left to individual countries, which do not have such funds either. Secondly, a deposit guarantee becomes undermined when it is applied to banks that are clearly too big to fail. This was the case in Cyprus. Thirdly, the troika has demonstrated that a deposit guarantee will be evaded if events require it. Now the credibility of the entire Eurozone banking system has been undermined. Whatever the result of the Cyprus bailout, the decision to initially expose the deposit guarantee will come back to bite the Eurozone.
[Re: Cyprus should not be sacrificed – let the country default, yesterday]
I completely agree with Douglas Carswell. Cyprus should have defaulted and devalued, and saved itself years of prolonged Europe-inflicted depression. We are already seeing that Angela Merkel, mindful of her electorate (with an election fast approaching), is willing to take scalps in order to achieve her own political aims.
Why are Cypriot politicians not refusing to accede to Europe’s demands? They are choosing to hand over their nation rather than regain control of their currency. It’s a scandal.
BEST OF TWITTER
Apparently Cyprus is now the template for restructuring in the Eurozone. Watch for deposits to leave weaker euro banks.
Eurogroup president told banks, and those that take private risk on them, that the rules of capitalism will now apply to them too.
If the economy was in better shape, David Cameron and Nick Clegg wouldn’t be so keen to talk about immigration.
Immigration is a huge net positive to the UK, but it makes sense to roll out red carpet for those we need and keep out those we don’t.