Euromoney (May Issue)
“The Cyprus solution is inadequate as well as sending the wrong messages on depositors’ risks and free capital flows. Then there’s Slovenia…and Italy….. So the euro debt crisis is not over….. Markets are far too sanguine about the outcomes.”
Tags: Banks, Cyprus, Debt crisis, Depositors, EU, euro, Free capital flows, Markets, Outcomes, Risks
New York Times (March 28)
“Should Scotland be an independent country?” On September 18, 2014, Scottish voters will answer this question. “After more than three centuries of political union, breaking up would be complicated…. Looking at the financial woes of small, independent European states like Cyprus and Iceland, Scottish voters may want to think twice about going it alone.”
Bloomberg (March 28)
“The first attempt to bail out Cyprus was such a shambles that the second looks smart by comparison.” The second plan, however, is by no means a success. In fact, it’s “still a disaster.”“The first attempt to bail out Cyprus was such a shambles that the second looks smart by comparison.” The second plan, however, is by no means a success. In fact, it’s “still a disaster.”
Wall Street Journal (March 27)
“Nothing is ever simple with a euro-bailout, and the Cyprus fiasco is proving that again. On Thursday the tiny island disaster will become the first euro-zone country to impose capital controls since the single currency was introduced. This will spare Cyprus from immediate economic collapse, but the curbs are a worrying precedent.”
Forbes (March 23)
“Forget Cyprus. A much bigger story in the coming weeks and months will be in Japan, where one of the greatest economic experiments in the modern era is about to begin. A country where government debt even dwarfs those of Europe’s crisis-ridden nations, Japan will attempt to inflate its way out of a 23-year deflationary spiral.” While the consensus seems to be that an accomodative monetary policy may jump start Japan’s economy, some fear it will instead “lead to a hyperinflationary disaster.”