Is it just me or does it seem like this is not being reported accurately. A eurozone country is stealing citizens money and people are depleting their bank accounts. This could be the beginning of a bad crash.
Overblown with regard to contagion. Cypress is screwed because it is so freakn small. LOL, it is not to big to fail. It's just not important. The idea of a cascade is just drama and completely absurd. I hope the market drops 10% I will buying dips until the FED hikes.
Meanwhile, The New York Times reported on Saturday that savers had already been trying to withdraw money from banks via ATMs and that many machines had run out of cash . But it might be too late already. Cyprus has declared a bank holiday on Monday to prevent such a run on the banks and banned electronic transfers.
actually the debt of the country is the debt of the citizens. Country debt in the end is just the consequence of permanently lower than required tax rates. That said the US are the world champion in making debts for the satisfaction of their citizens.
With regards to Cyprus: they will most likely introduce an exemption for small bank accounts lower than 25,000 Euro so don't poop your pants here.
hager...it's not about them putting exemptions or Cyprus' economy or failed banks. It's about the possible threat something similar could happen in bigger economies of the EU. Sure the EU can keep bailing them out but at one point something will have to give. Taxes are already high in socialist Europe but so is unemployment. Countries are going bk. There will be severe austerity in time, inflation and a move toward precious metals. Just the threat alone that occurred this weekend could cause a run on banks in certain areas. Who knows really but either way you slice it, it's not a good situation and the US and China will not be immune to these serious European fiscal issues.
Over here it may bot be considered a big deal because most Americans don't know much about what goes on outside of their hometown. Go figure a small country like Cyprus will probably spawn the beginning of some very crazy times globally.