Twenty Third Floor

Figuring out the future and the now

As Cyprus burns, does South Africa?

March 20, 2013

David Kirk

SocGen in worried about South African bonds, government borrowing, budget deficits and the economy as a whole.

“Volcano Eruption” is the phrase they used. That’s not subtle stuff. A few other analysts quoted in the article and more bullish on the Rand and downplay risks for South Africa. I don’t feel that there is much news-flow that indicates an eruption, but I just don’t know what Cyprus Burning does for investor sentiment.

2 responses to “As Cyprus burns, does South Africa?”

Piet

20 March 2013

Cyprus was just a trial balloon for the central banks to pull back from QE and put the burden onto depositors. Now thats been stymied who knows where we go next.

Reply
1. David Kirk
  
  29 March 2013
  
  You realise several of the banks are insolvent? This has nothing to do with QE. The banks have incurred losses and shareholders, bond holders and large depositors are losing their money.
  
  Reply

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