"This bailout
raises two questions. Will Cyprus’ bank run spread to the periphery? It should,
but I believe that it will not. Any depositor in the periphery must understand
that if its country requires a bailout, not one euro in either country is safe.
However, time has shown that the periphery has a great deal of faith in the
current system. There may be some people withdrawing money Monday morning, but
the run will quickly dissipate. It will be back to business as usual fairly
quickly.
