Cyprus may prove to be the straw that breaks the back of the world banking system.
Is This "IT?"
We've been saying for some time that the global house of cards could topple at the slightest rustling of the wings any of a number circling black swans. Something like the ECB turning draconian with Cyprus and scaring the heck out of everyone else in the EU seems more like a swan dive right into the heart of the teetering structure.
Many mainstream commentators are dismissing the significance of the Cyprus debacle – but the same type of people also dismissed the threat of the subprime crisis until it could no longer be denied.
This does not prove that what's happening regarding Cyprus today is the tipping point future historians will point to as the beginning of the end of the EU and hence the rest of the old economic order. But it could be.
Skepticism from the mainstream does not prove that Doug is right about the global economy exiting the "eye of the storm" this year, but it's a great contrarian indicator.
What is absolutely clear is that the extreme measures the ECB has just shown it is willing to take are solid evidence that we are right about just how shaky things are – just how close to the crumbling edge of the abyss the whole world is. ...