Draghi warns of potencial crisis in European banking sector

The Telegraph’s European correspondent Ambrose Evans-Pritchard wrote an article regarding a letter written by the ECB’s Mario Draghi warning Europe’s authorities not to “set off yet another conflagration with one their serial idiocies.” He explains:

“Draghi is entirely correct. Nor is the risk confined to junior bondholders. The latest utterings from the German finance ministry suggest that they will try to steal money from almost any investor that comes into view. (…) Berlin really is determined to horsewhip the capitalists – whatever the justice of the matter, or the risk that this could fly out of control – rather than admit to their own taxpayers that it costs good money to hold EMU together. Solidarity it ain’t. Besides, they are barking mad.”

While well-intended (or not, one never knows), they may cause a crisis in all the European banking sector if they keep on threatening anyone they come across. And yet, European authorities just ignore him.

For its part, European Commissioner for Competition Joaquín Almunia said that Brussels will follow its own roadmap, which isn’t theirs of course –it’s Mr Jeroen Dijsselbloem’s. The president of the Eurogroup is responsible for what happened in Cyprus, when they intervened the country (by the way, where is Cyprys now? Has it already collapsed?).

Now we face a new intervention in Greece. We should be prepared for seismic disturbances…

You have more information here.