- The Big Picture - http://www.ritholtz.com/blog -

Watch the Cyprus Bombast

Posted By Barry Ritholtz On March 18, 2013 @ 7:30 am In Bailouts,Really, really bad calls | Comments Disabled

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 [1] and this [2].

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.

Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2013/03/watch-the-cyprus-bombast/

URLs in this post:

[1] this: http://www.ritholtz.com/blog/2013/03/wtf-were-they-thinking/

[2] this: http://ftalphaville.ft.com/2013/03/16/1425732/a-stupid-idea-whose-time-had-come/

Copyright © 2008 The Big Picture. All rights reserved.