Well now things are going to get interesting. Cyprus has been offered a bailout but the
terms of the bailout are that bank deposits are to be given haircuts or taxed,
which ever you consider the proper term.
For accounts under 100,000 Euros, which are supposed to be guaranteed,
they will lose 6.75% and those above the 100,000 Euro mark they will lose
9.9%. Now Russia and its oligarchs are
not too happy about this situation because this was supposed to be a nice tax
haven but now there is risk in everything.
The next couple of days will be important to see how bad bank runs will
be in other poor European countries, Greece, Spain, and Italy. The US market is shrugging this off so far
but we are at the beginning of a game changing experience. This is going to be an interesting week.
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