Markets Open Down on Cyprus Bailout

This sounds like the opposite of the desired effect. International markets in Asia and Europe opened down on Monday on the news of an unprecedented proposed bailout by the European Union and the International Monetary Fund for Cyprus that would put a tax on bank savings to finance the bailout. Cyprus’s Parliament will hold an emergency session on Monday to discuss the bailout, which has angered the public and caused a bank run as people rushed to remove their savings before being hit with a tax. Cypriot President Nicos Anastasiades pleaded to the angry public to accept the deal, saying the country is facing its worst crisis since the Turkish invasion in 1974. Cyprus is the fifth European nation to appeal to the EU for bailout, and the country had apparently invested heavily in Greek debt.