Cyprus Crisis: Betrayal of trust in banks will cause a long economic jam

The eurozone's daft idea of taxing Cypriot savers has started a chain reaction that will lead to a devastating effect on credit and spending, writes David McWilliams.

24th March, 2013
Lawmakers vote on the nation's banking crisis in the Cypriot parliament in Nicosia last Friday. Photo: Bloomberg

If you ever doubted that we lived in an interdependent world, the traffic chaos in south Dublin last Friday will reinforce just how fragile the ecosystem we inhabit is. Running up one rat-run after another to avoid the escalating traffic, it struck me just how similar the flows in the economic and financial world are to the flows in traffic.

One small change in the real world of rain and traffic can cause enormous ramifications...

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