Dutch Finance Minister Jeroen Dijsselbloem, who also happens to be the current rotating president of the 17-nation Euro Group. What Mr. Dijsselbloem said, and his peers have tried to retract, is that the hodge podge handling and depositor-lead bailout of Cyprus was going to be the template for bank crisis resolution in the future.
On the very same day this revelation was made, the Cypriot authorities delayed the re-opening of their banks for the fourth time in a week, amidst fears that depositors of all sizes (not just the €100,000+ crowd) will be seeking alternative places to keep their money the moment they’re allowed to.
As my co-host Jeff Macke and I discuss in the attached video, there’s growing concern that there won’t be any money there once that day finally occurs, assuming at some point it has they have to re-open.
What’s interesting is that this tiny island-nation has not only ruined its own economy and leveraged its future, but may have poisoned the common currency well too. As Knight Capital’s Peter Kenny writes in his daily commentary, “fear or a lack of trust, once introduced into a conversation, has a way of lingering.”
See the full “Breakout” interview below:
Related: Euro (€) / US Dollar ($)(CURRENCY:EUR); Global X Funds (NYSEARCA:GREK)