By davefairtex on Wed, Jun 18, 2014 - 3:04am

Signs of Eurozone Bail-ins on the way, with timeline unknown

An indicator I developed a while back is starting to present a pretty clear picture of what life holds for bank liabilities in the eurozone.

When things go bad in a bank, when assets drop below liabilities, you can either increase assets (a bank bail-out by taxpayers injecting cash), or you can decrease liabilities - assuming you don't want all those bankers to actually lose their jobs in the unpleasantness of bankruptcy that would occur in real capitalism.

Adam Taggart
By Adam Taggart on Sun, Jul 7, 2013 - 12:42pm

Seeking Input from our German Readers

The stresses within the Eurozone can be simplified down to one question: Who will take the losses?

Too many countries spent beyond their means for too long. Now, as the debts are becoming increasingly unserviceable, those who lived prudently are being asked to subsidize those who didn't.