“In the 1920s the Reichsbank thought it could have 2,000 printing presses running day and night to finance government spending without creating inflation. Around the same time the Federal Reserve allowed more than a third of US deposits to be destroyed via bank failures, in the belief that banking crises where self-correcting. The Great Depression […]
So much for the denials. The Cyprus “template” for banking crises is to be eurozone policy for other countries after all. …Anybody with serious banking exposure to any EMU state on the front line of Europe’s macro-economic crisis now knows what to expect…..