New Acronym

To TBTF we must apparently now add its opposite, TSTM. Too Small To Matter. Apparently Cyprus is TSTM according to the wise men such as Paul Krugman. But while it may be an island geographically, it is not an island financially. If the Cypriot banking system is allowed to fail, the consequences may be felt far beyond its coasts, and indeed far beyond the Mediterranean. Banks are like dominoes – if one falls over, it is likely to take others with it. Be careful out there.

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