Thread-bare...

When this happens... you're pretty much f---ed.   Writing is officially on the wall.

All people in Western countries take note.  When your government gets broke enough, you will be on the hook for the butcher's bill.

So understand what it means.  The Cypriots are so broke, that in order for the other nations of the EU to continue to prop up their floundering economy, the banks in Cyprus have to impose a 10% "tax" on all bank holdings.  That's right, if you had any money in the bank, gathering a criminally small amount of interest, over the weekend, the government ordered the banks to pony up a 10% haircut on all of it.

Hey, fellow Americans - before you get that Smuggy McSmuggerSmug look on your face, know this - when they do it here (and they will do it) they won't hit bank accounts first.  They'll hit investments and especially 401K's and IRA's.  Look for there to be an announcement of a new Federal 401K / IRA like plan to be announced shortly.

Me?  I got out of the market and cashed out the 401K long ago - 2007, before the crash...  best decision I ever made.  Cash ain't bad.  Old fashioned devices like CD's ain't bad.

Stay frosty, friends.  This is not a good development.

Crazed American, OUT.