Cyprus runs on banks can bankrupt many banks around the world and cause great depression
Cyprus is a small country, but the Cyprus bank crisis is very significant. Runs on banks in Cyprus can affect the world banking industry and financial health around the world. A lot of Cyprus depositors are actually Russian. This can cause depositors around the world to withdraw money from weaker banks, especially those banks in the PIIGS Euro countries. Banks are usually very highly leveraged. Just a small portion of withdraws can cause them to bankrupt. This can become very similar to great depression runs on banks. When banks are scared, they do not lend, and that will eventually put the economy to downward spirals just like the great depression. We are only at the very beginning of the crisis.