Risk Premiums Raising As Contagion May Spread To Spain & Italy, Cyprus Deal Calls Into Question The Safety of Bank Deposits, European Bank Runs Could Spread Like Wildfire!

Monday, March 25, 2013
By Paul Martin

Investmentwatchblog.com
March 25th, 2013

CYPRUS & THE EU: CHAOS & COLLAPSE – Andy Hoffman

CONTAGION MAY SPREAD TO SPAIN & ITALY

Burning senior bond holders could create contagion again in European debt markets and now in addition to that bureaucrats have managed to make depositors in periphery nations nervous about their deposits in banks. This could precipitate bank runs in Greece, Spain and Italy with obvious negative ramifications for the entire EU banking and financial system.

Cyprus is a little domino which has fallen and may knock the larger more important dominos of Spain and Italy thereby creating contagion in the Eurozone. Especially as the political backlash against the EU and Troika is likely to be substantial and could lead to more power being gained by parties and movements that advocate leaving the European Monetary Union and indeed the European Union.

The Rest…HERE

Leave a Reply