Does Cyprus Scare You? It Should.

The monetary crisis in Cyprus scares the pee out of me.

Forget that it's "over there" (Cyprus?  where IS that exactly?)...forget that it's part of an economic union that was ill-conceived (if you are solvent, why would you join monetary forces with potential deadbeats?)...forget any thoughts about the REALLY BIG depositors (Russians? who cares? those money launderers get what they deserve)...and focus on what's happening to the people who went to work every day, lived below their means, and saved their money.  100,000 euros may sound like a pie-in-the-sky fortune, but it's about $130,000 U.S. or L85,000... think about it.  If you've been socking your money away for an emergency fund, retirement, your 401K, IRA's, YOU may have that amount or more.  And now you're in danger of having a portion of it taken from you without your consent.  I call that robbery.  It's also a violation of trust.  You put your money in the bank, you trust you can get it out whenever you want.  Not true if your money is currently in Cyprus where the banks are closed, ATM withdrawals are limited, and cash is now king.  CASH, not credit cards, not debit cards and certainly not checks.  Cold hard cash.

My acorns are not in Cyprus; they are in financial institutions to which I have immediate access, but questions arise... if I were to cash out today, where would I put the acorns?

Don't think that the Cyprus scenario couldn't happen to you, think that it COULD and think about the alternatives.

I think I need a bigger mattress.

Penny Pincher