ROB Insight is a premium commentary product offering rapid analysis of business and economic news, corporate strategy and policy, published throughout the business day. Visit the ROB Insight homepage for analysis available only to subscribers.
The Cyprus bailout is only the latest example of an absurd European trend. Namely, hedge funds earning outsized profits on bets that taxpayers would suffer to protect institutional bondholders. It’s not the hedge funds’ fault, and there’s no hint of illegal activity. The blame lies with the eurocrats, whose solutions to financial crises have become so predictably undemocratic that the hedgies would be fools to stay away.