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Tuesday, March 26, 2013

Chaos and Confusion - Courtesy of Dijsselbloem

As I noted yesterday, the idiotic remarks made by Jeroen Dijsselbloem about Cyprus being the template for future bailouts would cause chaos.

I was right.

As per the Guardian, by the end of the day shares in Europe were tumbling, the euro was dropping against the dollar and the cost of insuring European banks against default was rising.

Today we see further confusion and chaos caused by a split between Dijsselbloem and ECB executive board member Benoit Coeure being made public.

Coeure has flatly rejected Dijsselbloem's views, as per the International Business Times:
"I think Mr. Dijsselbloem was wrong to say what he said.

The Cyprus experience is not a model for the rest of Europe because the situation had reached a level which cannot be compared with any other country."
All very well, but the damage has now been done and the markets now no longer know who trust or believe from the Eurozone.

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