Capital Flight Intensifies in Italy and Spain; Curiously, Money Flows Into French Banks

• Capital Flight Intensifies in Italy and Spain; Curiously, Money Flows Into French Banks
  by mishgea, http://mishtalk.com/  
  Money continues to pour out of Italian and Spanish banks for safer havens. This month I note a curious side effect: A huge amount of money went into French banks instead of German banks. The following table shows the winners and losers. (top of post)
  …
  Lack of Trust
  To encourage more lending, ECB president Mario Draghi cut the deposit rate for money parked at the ECB from -0.2% to -0.3% on December 3. 
  Clearly that did not work.
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  Europe Fears Bail-Ins
  Stepping back a bit, here’s a key question: What caused the depositors to flee their banks in the first place? The answer is fear of bail-ins, confiscations, capital controls, and bank failures like we have seen in Greece and Cyprus.
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  read more.

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