EU Banks Unsafe

Immediately after the announcement that Cyprus depositors would face a haircut of 10%, I wrote that this would presage capital flight to the USA where this kind of theft of depositors money would not happen. The flight did not happen, and I wondered why. I am now realizing that depositors and bondholders all over Europe were in shock and disbelief. They seriously could not believe that this was something that could apply to them. Yesterdays announcement, by a senior EU official that Cyprus would be used as an example of how to deal with debt in other EU countries, will have made it clear that I was right and that the move on Cyprus was the start of a new approach that is devastating to simple depositors. The latest news is that far from 10% depositors now face losing most of their money. You may as well put the money under your mattress...its safer. For the first time in history BANKS ARE NOT SAFE IN EUROPE.