Cyprus’s Plan B Is Still a Disaster
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March 28 (Bloomberg) -- The first attempt to bail outCyprus was such a shambles that the second looks smart bycomparison. It’s getting generally favorable press, too -- thebest available option under the circumstances, and so on. Yes,it’s an improvement. It’s hard to think of anything thatwouldn’t be. That doesn’t make it a good plan.
The new deal has removed the craziest part of the agreementreached March 16 -- the plan to default on deposit insurance.Let’s not dwell any further on that insanity. But the new planstill has features that, seen in any other context, would surelyarouse surprise.