Saxo Bank (Saxo Bank)
Markets  |  March 18, 2013 15:51:14

Cyprus and fundamental change in the rules of the game


Shocking!

How else to call Cyprus bailout? Confiscation of 6.75 percent of the money of small savers and 9.9 percent is large in a supposedly civilized and democratic society unprecedented. But who knows? Maybe that the European Union had not among civilized democracy.

When I visited last week, Limassol, something I've heard these rumors but I dismissed as utter nonsense. Well, now that we have here. The consequences are unpredictable, but obviously we see a fundamental change in paradigm.

It is a fundamental violation of basic property rights, which was a small country dictated by foreign powers, and anyone who has money in any European bank must knock like a leaf. Even if the leaders can try at a press conference to present this as a one-time, be able to exclude that similar measures will not in another country. Not that depend on it too, as well as the confidence is gone.We can hardly count on the fact that the measures and the EU Troika will have any restrictions at all, once the crisis really incensed.

When someone does something once, do it calmly over again. When someone confiscates 10 percent of the money the banks' clients can also confiscate 25, 50 or even 100 percent. At this point, I believe that we will see more of that worse. Panic is growing and politicians are desperately trying to keep the euro alive.

Savers in countries where there is a rescue package must be pretty scared. It is still safe to have saved money in Italian, Spanish or Greek bank? I must say I do not know. It is wise to take that chance? The decision is yours. I'm afraid that the package will lead to a massive outflow of capital from the weak euro zone countries, which is exactly the last thing these countries need. I'm afraid that the same risk and EU, as in most countries already operating bank Union.

The package completely changes the game and you will bear the consequences of a long time. I believe that this could be the beginning of the end of the euro area, since this is a tremendous blow to an already beleaguered trust that investors have left.We can also talk about the goal into his own net.

The reaction of the markets? Excellent it probably will be for gold and to safe havens such as Switzerland, Singapore and economically healthier countries outside the eurozone, such as Scandinavia. My guess is that the euro and it established markets will be undermined by a growing lack of confidence when investors will realize the impact of the whole matter.

It's about full socialism. I still can not believe it really happened.

Be careful.

Lars Seier Christensen, co-founder and CEO of Saxo Bank

 

 Globální online investiční banka

Saxo Bank je globální investiční banka specializující se na online obchodování a investice na mezinárodních finančních trzích. Saxo Bank umožňuje soukromým investorům a institucionálním klientům obchodovat s FX, CFD, cennými papíry, futures, opcemi a dalšími deriváty a poskytuje i profesionální správu portfolia a fondů díky svým online obchodním platformám oceněným řadou různých ocenění.

Více informací na: www.saxobank.cz

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