Comment: A commenter on ZH, Buck Johnson, has a good take on it.

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A commenter on ZH, Buck Johnson, has a good take on it.

"Do you guys realize what the EU is attempting to do and what it truly means? They are going to stop any money being wired from out of Cyprus even if Cyprus govt. agrees or disagrees. Essentially making an economic blockade around the country in order to keep the BANKS not the people solvent. This means that they can't allow Cyprus banks and economy to fall because it would trigger the credit default swaps and other financial instruments and since the rest of the system is too leveraged and/or doesn't have the money to pay out even a percent of the swaps, that means it would start a cascade effect of sovereign defaults and bank defaults.

The EU is lying, Cyprus is important. And if you don't believe me, think about this. What country or it's banks wouldn't want the money that is coming out of Cyprus to land in their banks? Their afraid of the tens if not hundred of billions in CDS's that where taken out for Cyprus alone. Which if they default it would be a credit event and the person or institutions who bought those bonds would have to be made whole by the insurance that was paid for on the bonds or the banks that sold it. Those handful of banks don't have the money and the insurance company they used to insure the bonds don't have the money, what does that mean? It means that if AIG (the insurance company that insured many of the worlds bonds and derivative contracts) can't make good on those bonds and such, then all the other insured that may or may not be in trouble around the planet may be suspect and not protected and it would sink the whole hundreds of trillions in derivative market.

That is what they are afraid of and if that goes down it takes the western banking system and economies with it."