Some Cyprus Citizens Paid Hefty Price for Bank Bailout - Could It Happen Here?

According to a story on the Fox Business Network, depositors from the country of Cyprus were robbed yesterday, but not the traditional way. It was their government that skimmed 40 percent off the top from large depositors, Fox Business Network reports.

After banks got into financial difficulty, threatening to bring the country down, a deal was reached to bail the banks out. Unfortunately, it was depositors who took the fall, whether they liked it or not. The bailout deal involved 40 percent of the deposit amount from large depositors being used to keep the banks in the small island country afloat.

So the big question for people in the USA, particularly in the light of the current financial situation where the outflow of cash continues to be in excess of the inflow, is could that ever happen here?

"No," the experts say. For one, we have a different system and can print money if we need to, Fox Business Networt reports. Also, Bank deposits, at least up to $250,000, are insured by the Federal Deposit Insurance Corporation. Even so, the experts say, it may be a good idea if you have funds in excess of that to split up the risk and keep money in separate accounts - just to be on the safe side.

After watching what happened in Cyprus this week, do you feel secure in the American banking system? Or are you beginning to think that the old mattress system might not such a bad idea after all?