Francis Coppola — Sowing the wind

"They sow the wind and they will reap the whirlwind." — Hosea 8:7

Francis Coppola analyzes the Cyprus haircut. Could this be the new Creditanstalt?

For the fact is that deposit insurance everywhere in the EU has now been undermined. The precedent has been set for insured depositors to suffer losses in order to protect Russian oligarchs and reckless banks. If the Eurogroup can impose this on Cyprus, it can do so elsewhere too. Yes, Olli Rehn says they have no current plans to do so, and insists that the Cyprus bailout is unique. But haven't we heard this before? Wasn't the Greek bailout "unique", and the Irish bailout, and the Portuguese bailout, and the Spanish bailout? It is only "unique" until the next domino falls. I would not be surprised now to see bank runs across the entire Eurozone periphery, and perhaps in other EU countries too. 

Coppola Comment
Sowing the wind
Francis Coppola

This is likely going to be bullish for gold as a safe haven.