Mobius thinks that Cyprus is a small issue that became a big issue because of the crazy idea to tax deposits of small savers that was originally suggested.
This creates doubt among small savers in banks throughout Europe about the safety of their deposits. He thinks this is a short-term concern that will go away with time.
Mobius thinks that at the end of the day there has to be some sort of default in Europe. The key will be the form of the default.
He thinks eventually there will be a deterioration in the strength of the euro, especially against emerging markets currency.
This creates doubt among small savers in banks throughout Europe about the safety of their deposits. He thinks this is a short-term concern that will go away with time.
Mobius thinks that at the end of the day there has to be some sort of default in Europe. The key will be the form of the default.
He thinks eventually there will be a deterioration in the strength of the euro, especially against emerging markets currency.
