I do not have a whole lot to say about the Cyprus story, but I do want to point out some of the already more ridiculous comparisons that have been made.
This is not about punishing savers. It is about a 1 million person island that has become a tax haven for Russian oligarchs.It is not another MF Global.
I expect to see a run of very serious articles about “Confiscation” and “Moral Hazard” and other such empty headed filler. I plan on ignoring much of the blather, choosing to focus my limited time and attention on smart analysis and commentary. Like this and this.
No one is confiscating things in France of Italy — but just you wait, we are told.
An important skill to develop is the ability to read critically and think analytically. After years of practice — I taught the GMAT & LSAT while in grad school — it becomes second nature. I can tell in a sentence or three if something is worth reading further. Perhaps this accounts for the popularity of the AM and PM my reads.
Regardless, before you get yourself worked up into a frenzy over this story, try to take a deep breath and put it into context.
I am not at all suggesting that this is not potentially a significant development; I am saying that the usual suspects have blown up describing it the way they often do — turning a backyard pit BBQ into a nuclear conflagration.
Yes, a room full of gas fumes is very dangerous — especially when it meets an open flame. Ask yourself if that is the situation at present, and make your plans accordingly.
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.