I would suspect that we have bank runs going on in the periphery in Europe. How anybody could leave money in a weak country’s banks is beyond me. We saw what happened in Cyprus. It was a disaster for the depositors. I would imagine most people say, ‘It didn’t happen to me.’ Well, you know what, IBM, Microsoft, GE and multi-national companies, they operate in every country. They saw what happened in Cyprus and you can imagine the CFO’s of those companies saying, ‘Oh my goodness. Who’s next here?’
We all know who’s on the list of potentially who’s next. You know they’ve got to be taking their money out of the banks. That’s why we have that emergency G-7 meeting three weeks ago. That’s why we are talking about a ‘banking resolution.’
Every time you hear the word ‘banking resolution’ just read the words ‘bail-in.’ That’s what they are talking about here because they have that template. And I suspect it’s going to happen again. I think when we get one more ‘bail-in,’ people are going to realize that having money in a bank is risky."
- Eric Sprott via a King World News interview, read the full interview here: