Economists Warn Depositors May Be Burnt In Bail-Ins (Part III)
Friday, 6 December 2013
Economists Warn Depositors May Be Burnt In Bail-Ins
On Tuesday we launched our in depth research report ‘From Bail-Outs to Bail-Ins: Risks and Ramifications’ in order to shed light on and foster debate on what we believe is one of the most significant risks facing investors, savers, all depositors and most western economies – bail-ins.
In it we detail, how bail-ins are a real risk not just to vulnerable countries like Greece, but to any countries in the EU, the UK, the U.S., Australia, New Zealand, Japan and most of the G20 countries.
Below some leading economists and financial commentators in Ireland give their perspective regarding the risks of bail-ins. If you manage money in any way, your own or others, it will be prudent to heed their warnings.
“The recent abatement of the euro area crisis and the reduction in overall global financial uncertainty have led to a decline in the demand for gold as a safe haven instrument and speculative asset.
This is the good news. In line with more normalised demand for gold and the precious metals, the risk hedging properties of these assets remain intact and require continued and structured approach to their inclusion when building a diversified, long-term focused investment portfolios.
In addition, changes in the regulatory and policy responses to the financial crises, established in response to the Cypriot banking crisis, warrant longer-term re-weighting of optimal gold and other precious metals’ shares in defensive portfolios.