Even last year when the European banking system was shaking it was Draghi of the ECB that promised to use and make unlimited resources available in order to buy PIGS-paper. In this ways, savings depositors were calmed as the money at the bank supposedly would be safe.
It all was until this game-changer of a weekend when they made a kind of decision involving Cyprus, that offset all efforts ands decision makings in the last 2 years. And for what? A silly €5.8 Billion? Like this will create any change? And yes it’s only 6.75% and 9.9%… today! If this is tolerated, what about the future?
What about savers in Greece, Spain and Portugal? I bet you they will be a lot more insecure about their money at the bank! This will have huge implications. With this specific action Europe shows that it is willing to do anything and everything to preserve the Euro. It is because of this action the Euro will be under intense pressure for weeks maybe even months to come.
This will definitely move savings in all kind of directions. My bet a lot of it will flow into real assets, Gold and Silver!
Source: http://www.beurs.com/
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Sven Van Tongeren
KOTM Contributor-At-Large
Sven@KeeneOnTheMarket.com