by Claudio Grass, Claudio Grass:

Part II of II by Claudio Grass

A real systemic crisis

If there was one thing more telling than the bank failures themselves, it was the governments’ reaction to them. The sheer panic that shook US, Swiss and Eurozone officials was almost pitiable to behold. The way they all rushed to make statements denying that this would be a repeat of 2008 was alarming instead of reassuring. And their apparent, urgent desperation to be believed was perhaps reason enough why they shouldn’t have been. We were told that the failed banks would be rescued, of course, so depositors and the market at large had nothing to worry about, but “by no means would they be bailed out”. Honor, once again, was sorely lacking in all those statements and assurances. Because as I pointed out in my last article, a bailout by any other name still stings the same.