Check out your 401k and ask yourself if Cyprus does take private assets to fund a bailout, who else might decide that that’s a great idea?
Read about it here, from Forbes.
Why is a dot-sized European country causing outsized effects? Because what starts in Cyprus, a tiny isle of 1.1 million people, could soon spread to London or New York or Hong Kong, making misery for many millions more.
Cyprus experienced severe turmoil this weekend after its prime minster agreed to force a tax on all bank deposits in order to receive a bailout. The prospect of a tax set off a run on ATMs and made observers worry that financial contagion could spread throughout the continent and then beyond.