INTERNATIONAL BUSINESS TIMES: ‘Fears of a partial breakup of the euro zone are already causing deposit flight from banks in Portugal, Italy, Ireland, Greece and Spain — sometimes collectively known as PIIGS — said Jens Nordvig, head of fixed-income research at Nomura Holdings.
“The deposit flight has already taken place,” he told Bloomberg Television. It’s not like we can pretend there is no problem nobody is going to notice. … This is already happening.”
Though a breakup isn’t his central thesis, Nordvig believes it could happen if current austerity measures fail and leadership of governments in the 17-member euro zone lack the political will to push through fiscal integration — central management of member states’ combined finances… (more)
EDITOR: Sometimes market forces bring about what politicians are fearful of doing.
