The Cyprus Parliament appeared poised Tuesday to reject the $13 billion international bailout that would force bank depositors to pay a levy.
So what happens now?
Will Russia step up to offer money in exchange for oil and gas? Will China offer a similar deal to Cyprus?
Will those with money in Cyprus banks withdraw it and deposit it elsewhere, leading to a run on the banks?
Will investors flock to gold as a safe-haven investment?
Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared Tuesday on Fox Business to talk about the fast-developing story in Cyprus and the potential fallout in Europe and well beyond, including in the United States.
Fitz-Gerald said a vote in the Cyprus Parliament to reject the bailout "is a big deal because it sets the stage for a very, very dangerous precedent."
Check out this video to hear Fitz-Gerald's perspective on the Cyprus situation - and whether the U.S. government could come after your bank deposits.
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THE CYPRUS BAILOUT SETS A "VERY, VERY DANGEROUS PRECEDENT"
March 19, 2013 at 16:48 PM EDT
The Cyprus Parliament appeared poised Tuesday to reject the $13 billion international bailout that would force bank depositors to pay a levy. So what happens now? Will Russia step up to offer money in exchange for oil and gas? Will China offer a similar deal to Cyprus? Will those with money in Cyprus banks withdraw it and deposit it elsewhere, leading to a run on the banks? Will investors flock to gold as a safe-haven investment? Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared Tuesday on Fox Business to talk about the fast-developing story in Cyprus and the potential fallout in Europe and well beyond, including in the United States. Fitz-Gerald said a vote in the Cyprus Parliament to reject the bailout "is a big deal because it sets the stage for a very, very dangerous precedent." Check out this video to hear Fitz-Gerald's perspective on the Cyprus situation - and whether the U.S. government could come after your bank deposits.