Today EURO And Yen Are Both Losers

What a shocker- the Euro 'powers that be' are playing a high stakes game with some big questions lingering over the precedent they are trying to set. In some investor's eyes, the island of Cyprus could now 'unofficially' become the test case for the EUR's survival. This small controversial island's economy accounts for only +0.2% of the Euro-zones GDP but whose troubles are having a global impact on investor's nerves this Monday morning.

On Saturday, the country received in gesture a EU +€10b rescue package in return for a series of unusually harsh conditions. The deal included a “tax” on depositors - 6.75% for anyone with less than €100,000, +9.9% for anyone with more than that. The problem is that no one is naive enough to believe that depositors were not going to take a hit, however, no one expected the small to take a direct hit 'somewhat forcefully' along with the big.

It's a given that all bailouts are unfair. The Euro policy makers are trying to...