societe generale has subsidiary in cyprus. biggest banks in cyprus are local banks. david: boy, do you see this spreading, erin? we've got to go. do you see i had spreading beyond spain and italy and possibly even over here? >> i think that is not likely. it might even take a while to spread to spain and italy. that may only happen if we start it see worsening trends in credit walt. david: erin davis from "morningstar". good to have you on. thanks so much for explaining it. appreciate it. >> thank you. david: thank you very much. sandy, over to you. >> david, people might have a little less to spend this spring but that doesn't mean they won't be buying new clothes. you never sacrifice fashion. up next we've got a top analyst ready to share her fashion stock picks for your portfolio. >>> samsung's newest phone putting a lot of pressure on apple. find out how the tech giant is responding to the competition. log on to facebook.co facebook.com/afterthebell, click on the "like" button. tell us what you think is the best smartphone on the market right now. ♪ . today is

of capital out of cyprus's banks. they're trying not to let the money flood out of the country. this is what we're seeing at this very hour. still talk of a solidarity investment fund where people from around the world, countries from around the world can invest in the fund. still moscow is saying you know what? we'll not help out cyprus just yet. that's what we're hearing this hour. tracy: lizzie, we unfortunately don't have ton of time. this money is ours and we'll do what the hell we want with it. >> type produce's money is the government's, if they want the european central bank money. this is politically dicey for germany. that is why germany says, cyprus has to fund its own bailout with the bank deposit tax. we'll watch out throughout the weekend, if this flies it would be a big deal to stop, for the first time, a member country of the eurozone exiting in the 14-year history of the e.u. monetary union. adam: you have got to wonder people in spain and italy say i might want to get my money out. >> one point. talk

is and what cyprus ever was. and now, i'm getting news from cyprus, i have first cousins in cyprus who are obviously devastated. the and my mother got a note from a woman who worked her whole life and son has no job, that's the only money. so you're talking about a nation that obviously is a political-- it's a political game almost in that russia now is -- there's warnings from a former kremlin over in russia, former kremlin advisors saying that the eu should now be wary of russian retaliation, there was a lot of money, russian money over in cyprus and part of why they are doing what they're doing. it's a big story and you're not going to have the economy return to the way it was soon and watch the euro because that affects all of us. stuart: nicole, thank you. we often refer to new york mayor michael bloomberg as nanny bloomberg. is that right? is he right? i make the case for the nanny state. listen to it, my take next. ♪ [ male announcer ] how could switchgrass in argentina, change engineering in dubai, alum

all about cyprus. cyprus, they'll out approved. >> the economy is likely to get worse. >> continuation of stealing what has already been stolen. they will not be happy. >> they are devastated. that is not what cyprus is or ever was. >> europe does not have the mechanisms in place that the united states has to manage a currency or a banking system. >> watch the euro. that affects all of us. stuart: italian banks have been halted in trading. charles: yes. stuart: why? charles: they are worried. these stocks are plummeting. stuart: the dutch finance minister said the cyprus situation is a good template for other european countries. they have reached into private bank accounts, taken the money out and used it to finance the bailout. that is what everybody wanted to avoid and now the dow is down 43 points. >> that italian banks are frozen because now the fear is they will have their money taken out. stuart: the dutch minister is now staying this could prompt a euro zone bank restructuring. that is why the d

cyprus. a tiny island country in the mediterranean, it will vote tomorrow whether to allow a tax on private bank accounts to pay for a bailout. if they can seize your money in cyprus, why not spain, italy or here? that's why our markets will open lower today and money going into gold. buried in the back yard and they can't touch it, can they? $1600 an ounce for gold right now. america's run away debt has a ben carson word and launched another salvo. 's he a rising conservative star and warning about our debt problem here. he says the president is ruining the nation. >> let's say somebody was there and they wanted to destroy this nation. i would create division among the people, undermine the financial stability of the country. it appears coincidentally that those are the very things that are happening right now. stuart: remember that expression, undermine the financial stability of the country. we will be hearing a lot more about dr. ben carson's remarks throughout the day's program. eric bol

the former cypres cyprus trader. still on the board there. let's talk about cyprus. we'll move onto the euros on how this affects everybody. let's talk about cyprus, there was an invasion in the early '70s. tell us. >> 1974, turkey invaded and we lost 80% of our agriculture, 70% of our tourism in the head to work our way back. so now we are going see the international financial center destroyed because of what is happening. dagen: you believe cyprus would have been fine. >> economically it would have been fine. but we are european, we need european support so it was the correct thing to do. nicole: the damage is done, you expect the cyprus economy to shrink? >> yes. between 10-20% contraction. this is enormous. cyprus will be in a recessionary period. it'll be hard or cyprus to get back on its feet. nicole: let's talk about tomorrow when the banks reopen. what are you expect? could it scary? >> it could be very scary. not allowed to take over 10,000 euros in the bank. hold money in the bank. the liquidity of the bank secured by the ecb, we will not run out of money.

we have cyprus out there. we know about that event. in my notes, cyprus equals vermont. looking about the same, sort of economic size that is out there. we don't think cyprus, the he will havements there will really de -- derail some of the positive developments unfolding in the peripheral eurozone bond markets. david: jack, let me take one country in particular mexico. because i've been reading a lot howe they're cracking down on some of their legendary corrupt union leaders. they're doing other things to release the supplyside of that economy to let businesses work with greater freedom. is mexico a big hit as far as you're concerned? >> it is. i talked a little bit the eurozone peripherals. there is opportunities there. but probably better opportunities in latin america and mexico is probably the lead on that. we've been building out positions in mexico over the last year. you're absolutely right. they're one. few countries that sort of is embracing supplyside economics. moving down this path of reforms. breaking up monopolies. david: including union monopolies. >> exa

my opinion, it is cyprus. it does not look like the russians are going to give cyprus any money. unless you go after private bank account, we will let you collapse. there is a debate at this moment suggesting the nationalization

neil: but this is one thing cyprus they argue might be cyprus, but i would imagine if this would spread to countries like greece and italy, and they were even to consider it, quite a develop reaction, what do you see? >> well, thank you, neil, and cyprus is the test market for this. i think it could spread throughout under if it is successful. if you look at cyprus, you are a citizen, you woke up this morning and you were informed that government closed down the atm, they chained doors on the banks and you can't have your money that undermines the trust in the banking system. neil: how are you going to avoid a bank run? even if they patch this over, are you telling me, someone of average intelligence is not going to say, i don't want to risk it, i am taking my money out to be safe. >> here is how bad it is, if you are a citizen of cyprus, you can't go to atm or the bank, you will be given a choice to vote, you can vote not to take bailout, and your bank fails your banking system fails and your country falls with chaos or take the bailout, have 10% of your money confiscated i believe sto

that is what concerns me about this cyprus tax. what the poor saps will discover when the banks reopen in cyprus, run. can't take their money and the government is watching and limiting, and i am kind of worrying. what is going on in this island nation, is a tsunami. bank on it. literally. to rich edison, in cyprus to this nervous night before, hey, rich. >> good evening neil, you have to imagine, folks without access to their banks account will have some tomorrow 8:30 in the morning. for more than a week these folks had closed banks today there was a bit of a lull, in fact that banks were closed not because of a bank panic but a regular holiday, greek independence day. but there are thoughts to last week with long lines in front of the bank, protesters in front of parliament and presidential palace, a couple protesters from last night who want to return tomorrow evening and continue their protesting. neil, you talked about limits, customs and border patrol, from "wall street journal" are looking for those leaving, with more than 1

david: dimension to cyprus. property rights used include stuff like bonds when you buy a bond, you're buying a bet that is secure, as we saw the government took some of that away in the financial crisis here in the u.s., the backdrop of our racing a little? >> it certainly shows up in the various qualitative measures that are in here when you ask about how secure is the credit structure, shows up in those measures and the u.s. dropped. david: finally, i assume if they eventually go ahead and confiscate the bank deposits we would at least be above them, am i correct? >> we would be above them, they would drop substantially. david: great to see you, regulations on the report. lauren: sometimes the road to opportunity takes you through other countries. up next, focusing even deeper into the emerging market and the publicly traded companies that stand to make money off of them, money you could be making. stay with us. investor. yeah, i'm a serious investor but i'm busy guy. it used to be easier but now there are mor

stuart: if they seize any money from any private bank account in cyprus, it's all over for cyprus being a tax haven. i mean, it's just over. nobody's going to put money into the place after this. but another subject is the germans. it is the germans, isn't it? they want to get money out of private banks. they're the ones who are saying go after that russian mob money or else we don't give you a dime. this is germany, merkel versus putin, isn't it? >> well, it is, and i mean, there's a lot at play here, frankly and i'm sure, actually the current administration here in the united states is watching this keenly thinking, really, you can do that? but i think that, you know, that the russians are making a play in cyprus in part because there's an oil and gas issue here going on and that actually is sort of over the top of this question of the russian money that's sitting in cyprus and how much of a hit. you could be talking about, again, about 3 billion dollars of russian money, most of it coming from questionable sources over the years, being scooped up by germany, by the eu, to try to fina

just past midnit here in cyprus. so most fol were asleep by the time the news hit in the wake up tomorrow and find out that they are not allowed to get to the bank. the other issue that was here, going on here this morning is that it is a national holiday. it is greek independence day, what is a cyprus-holiday. there were parades. people were not necessary getting it off of their mind, but distracting theelves in the banking crisis, certainly talking about it, but least a cause for celebration, something of a national holiday. it is back to work. that is not happening now. expectation in this, what is essentially -- rihanna shore of people will react. they have to wait two more days. that is, of course, if there are no more push backs. gerri: wow. thank you for coming on. i know it is late. we appreciate your assistance. thank you. gerri: our financial tackle the biggest question including whatever happened to the predicted sell-off. the same big mistakes for rich and not so rich. stay with us. ♪ ♪ your finances

cyprus and the bank of cyprus. guess what, both of these banks have offices in london, so what dthe smart people do? they went to london in took their money out where they were open. the people who launder money, they can get at their money. who couldn't get to their money? the woman you just saw complaining about what is going on, the people in cyprus are the ones having trouble and have no options. i cannot imagine how frustrating this is. ashley: they are not getting paid, atms are running out of many and chaos, when are they going to open? we're now hearing thursday, that could change but can the system itself withstand what will happen when they do open? >> this has really been a failure of the bureaucrats to negotiate something. mistake after mistake after mistake. they delayed getting some sort of resolution with the eu, they were relying on the russians to do some kind of a deal with them, definitely doing that, that didn't happen, they didn't really have a plan for it. i think you really have to look at th

neil: do you see it in cyprus. >> i see it outside of cyprus. neil: where is this money going? >> to solid countries, german. neil: thank you very much. my buddy charlie gasparino said we could be looking up, compared to the rest of the world we look pretty good. we're like the tallest midgeet in the room, but that mattered in wizard of oz. >> assets will go, bob said it, to the safest place,. neil: are we that place? >> we're one of them u.s. treasury pone bond is one of the sive havens, and u.s. dollar is, our day of reckoning. neil: but what if it our barges that are deemed exposed to this. >> yeah. neil: i'm talking to other countries? >> we could have issues with that, one of the things -- and this still has to play out. we're talking about muddling flew. i don't think that italy will go right into default off the bat. but i have family in italy, that is the moter of welfare states, i don't think they had positive growth in terms of their economy. neil: they are most vulnerable after? >> i would think they and spain. neil: how could we resist what is going to there? >> wha

dennis's parents were born in cyprus. my parents were born in cyprus's as well. we'll follow this issue is really not about cyprus but about the whole globe as well. >> obviously. that's the whole point. >> thank you, dennis. >> thank you, nicole. >> a key issue and we'll follow the russian story as well. lori: thank you, nicole, for sharing your story. didn't know your folks are from cyprus. melissa: since his election in 2002, the new york city mayor michael bloomberg has initiated a number of health proposals. now he is proposing to ban cigarettes from being displayed in his stores. they're hiding cigarettes. is that going to prevent people from smoking or is this another instance of mayor bloomberg's big government meddling? let's get the verdict from judge napolitano. andrew napolitano. >> i'm chuckling a little bit. this follows nicely from nicole's wonderful interview with the trade representative from cyprus. the same mentality it can just steal 10% of what you have in your bank account, thinks it can tell you how to live and take care of your body rather

we'll go live to cyprus for that. and the newest story on the explosion of social security berths and the federal government is dishing out. what's the incentive to work when you can live off the government dole because of back pain? those outrageous numbers are next. friday night, buddy. you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com. >> astounding and sickening news numbers this morning on the entitlement explosion here in america. welcome to the new hour of "varney & company." i'm charles payne in for stuart. well, the number of americans on social security disability alone far outpaces the number of new jobs that are being created in this economy. in fact, here are the numbers for you. 14 million, that's how many disability checks the federal government sends out each month. the government spends more on disabled w

is getting ready for cyprus. the bank of england suggesting the bank put $38 million aside just in case. just in case of what? >> it is frightening. pilot and cyprus and i hope it is no less at home we get the national debt which is claiming steadily under control. we are frighteningly close to moving the direction of portugal and italy and greece and now cypress. neil: but our situation is not as nearly as dire although charlie gasparino said rear the tallest midget in the room. is that enough for now? i think the u.s. is the main beneficiary of the implosion which this is not just a couple of days in the making i talk about the stock market as a leading indicator the stock market was down 90% over the years preceded. if you look at stocks we have the u.s. dollar at the multi month high and u.s. stock market not far from the all-time high but bankamerica, a jpmorgan will do very well and made beneficiaries. neil: when i see england take the insurance fund out out, and i hear an italian depositors worry, obviousl

cyprus is no longer an island. cyprus is a tsunami. it scares me customers worldwide. that is what they are hoping to avoid this weekend. it depends on whether they deal with this. going to john brown, and our own nicole petallides on whether they can and will. nicole knows of what she speaks. her parents are from cyprus and she has visited there many times or so. these are wholly times. >> i am so glad that you're painting it in the proper way. this is .2% of europe's gdp. it is a small island and it is being menial to so many. but it paints a picture of what is going on there. which is catastrophic. you go in there and you are talking about confiscating peoples money. not letting them have access and availability to them. almost turning this over what really is a huge political battle around the world. the russians and germans and the eurozone and cyprus is caught in the middle. in the meantime from the people are not able to access their money. they don't have gas lines. they are not able to get gas. it is unbelievable the fact that they are living there. the fact t

nicole, both your parents were born in cyprus? >> both my parents were born in cyprus. my mom in the north which is beautiful though i have never been and my father in another part. so it is a beautiful island. it is great. but obviously the people in cyprus are up in arms about the idea they may put a tax on bank deposits, a place where you think your money is safe and you're finding maybe not so safe. the decision is tomorrow. the banks are closed until thursday. meantime we've seen a very strong dollar. a euro that is certainly has pulled back to four-month lows. we're watching the market coming under pressure. we'll look at some of the banks here on the heels of what we're hearing over in cyprus. you can see the banking index has been to the downside all day. the banks abroad also been lower. national bank of greece at a 52-week low. citigroup down 3.2%. bring it home here, morgan stanley also down 2.25%. goldman not too far off that. goldman sachs off 2% on the day. when the market was virtually flat at one point we saw financials being the group under most pressur

but no new news on cyprus. one of the panelists hinted at it at the end, but we did not hear much from bernanke on the future of monetary policy in the united states but mounted a defense using money, connotati t two totals. but ben bernanke distric dismisg critics who say they are devaluing the currency to exports, boost economic growth. it didn't mention any country by @ame, but japan, the yen has tanked. bernanke asked in his remarks does it constitute continued devaluation? no. >> the benefits in the event economies is not created any benefit way by the change in exchange rates. they come from the support of their demands in each country or region. peter: bernanke added it is strengthened by advanced policy helping other countries, help their neighbors because of higher consumer and desist demand for goods from them, from everywhere. liz: have you ever seen these guys like that? liz: thank you so much. we're going to start showing you how currencies are trading right now in response too much of the currency

the cyprus issue is a one-off issue. they have a different economy and certainly a different banking system than even other countries in europe. so you're not going to see this kind of same result happen in italy, spain, france or portugal, number one. number two the markets here are operating on their own assumption rates will be low. money has to go somewhere to find return and that is being so. that's why i think they will keep going up. melissa: harry, is it a positive for the market because it makes u.s. markets look that much more safe and attractive? >> it does in the short term but we, the markets should be worrying about europe. europe is in what i call a demographic plateau. we'v already been in a downturn. they fall off a cliff in couple years. if they're in this much trouble and cyprus, yes, it's small, but a big symptom what is happening there. here is what happens when individual countries don't have printing presses. the fed here creates a trillion dollars a year to push up bank reserves, push up markets w

that is cyprus popular bank. it is supposed to go to the nation's largest bank to keep that afloat, but there are questions to that result bank if russians have taken all the money out of it. there is still plenty of questions and details left outstanding in cyprus. connell: rich edson live for us. peter now with more on this. what is your take back here? worried even though the market here is at an all-time high. just i did think it is a european story, what is your take? >> i think people are ignoring the broader implications of what is going on here, and the banks or the governments are realizing they can simply backstop all the losses, the moral hazard is we cannot have people operating under the pretense to matter where they put their money, no matter how recklessly banks have the money, that they will be protected. the highest yield without any regard to risk banks are taking in pursuit of those deals. connell: many make actual comparisons between what happens over there, and what happens in the system. the

we're on cyprus vote watch. can the russians actually come to the rescue if there's a no vote in cyprus? they say no, we're not going to seize your bank account. that would mean that cyprus, essentially, goes belly up. will the russians step in with a bailout of their own? it's on the table and plus, the white house now threatening the annual easter egg roll. could it get cut because of the budget fight? is that really what we're cutting? that will be new at 10. don't want to make money. i love making money. i try to be smart with my investments. i also try to keep my costs down. what's your plan? ishares. low cost and tax efficient. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. you are gonna need a wingman. and my cash back keeps the party going. but my air

cyprus's parliament shoots down the e.u. bailout so the real across for global markets may be just beginning t could be music to russia's ears? a former top imf official joins to us explain. >>> plus, t. boone pickens said natural gas would revolutionize transportation. every called him a madman but now he is having the last laugh. we'll get his prediction where natural gas prices are headed next. >>> not even a down economy can crush rock and roll. legendar kiss rockers gene simmons and paul stanley kick off a big expan shun of their restaurants. they're here in first on fox interview to tell us why now is the time to bet on the consumer. even when they say it's not it is always about money melissa: first let's turn to today's market moment. fears over cyprus's bailout led to a choppy day of trading on wall street. the dow managed to eke out a slight gain wi the nasdaq and s&p 500 posting minor laws. the s&p fell for thehird straight seson. that is the worst losing streak of the year. microsoft could be in some hot water wi

cyprus, we have to attack this in a deeper way. they may have reached a last minute deal to secure much-needed bailout funds but seems as though the damage is done as fears of contagion now spread. maybe italy as well? we're live. david: also could the turmoil in europe actually be good for the united states and our markets? we have someone who says yes, and it could push us straight through to dow 16,000. jeremy siegel is a professor of finance at the wharton school. he has been right on the market before. you don't want to miss what he has to say, coming up. ♪ . [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close tohe options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪ how old is the oldest person you've known? we gave peoe a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great th

neil: in cyprus explodes and banks reopened, let's see what happens to the residents of cyprus. people say oh, we are there for you. perhaps is next. that they >>. melissa: i'm melissa francis and here who is made money today. investors that are staying optimistic about cyprus. it is scrambling to win a last minute bailout to avoid collapse right now as we speak. the bulls are betting a deal happens before the monday deadline. the euro is rallying against the u.s. dollar, and, if you owned apple, you made money. a top analt expects the next iphone to arrive this summer. shares rallied 2% closing above the 50-day moving average. that is the first time since october 4th for that stock. look at that. but the big money winners of the day, anyone who bet on harvard basketball whoo-hoo!. my alma mater won its first ncaa ever, ever. the school has been around since 1636. upse number three seed new mexico. i will cash in with a wager i made with one of my guests this week, if harvard wins anything, if they win a single game, score one point i win. how about that? >> i send you joe's sto

cyprus said no. i'm charles payne, stuart is going to be back tomorrow. but today, here is the big story. here is a country that was willing to sacrifice its people to save its banks. well, the people protested and lawmakers unanimously voted no, no taxes on private accounts. so now what? welcome to the rescue. the country has 20 billion in cypriot banks and wants to top the natural gas reserves. the finance energy advisors immediately hopped on a plane to russia. move over, harrison ford, vladimir putin might be the hero of this story. "varney & company" is about to begin. and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef bere opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find se good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. >> it's wednesday, march 20th, the fir

we are live in cyprus. adam: president obama said his health law would lower cost, but a new report is another example of how that is just not the case. we will tell you how much mortal cost you and get lou dobbs take and what he thinks this is all about. coming up. melissa: stocks now as we do every 15 minutes, nicole petallides is standing by. nicole, stocks are down, but off of the lows of the day. nicole: absolutely. we have come off of our lows of the earlier day. improving some. the dollar still remains very strong, the euro hit four-month lows, the dow, nasdaq and the s&p still in the red. the retail index, the bank index, transport all to the downside. oil services looking a little bit better. but the big picture as we continue to watch a market that is somewhat tepid and nervous. we gained over 100 points, gaining some of the defensive sectors leading the way. in pending home sales index up 8.4% since february 2012. keeping an eye on target, last year noted to fox business about the fashion. they l

cyprus as an offshore banking haven plays a unique role and the response to the crisis inside cyprus reflects that one-off nature. your question was a really good one which how it affects a other offshore banking havens that is a really good question. if you have small islands, they don't have to be islands but in this case many of them are, actually enormously dependent on their role as offshore banking havens, without a lot of other economic growth opportunities for their economies, what happens if something goes wrong? do we then say, wow, that entire economy is so wildly exposed to its role as an offshore banking haven that something bad could happen? is that fragile economy something that we ought to actually say, you know what? let's take a look and maybe offshore banking havens ought to rethink their model. that is not necessarily a bad thing. melissa: doug, interesting stuff to think about there. thanks for coming on. >> sure. my pleasure. melissa: so back here at home, scary new study 28% of americans have no confidence, none, that they will have enough money to retire. 57%

sony companies have bases inside of cyprus and offices inside of cyprus. charles: you mentioned your cousin is happy go lucky. so are you. she is beautiful what you are beautiful. nicole: i wish everyone would go to cyprus. i used to water ski every morning. it is a suitable place. charles: i hate to say this, but i think there may be some specials coming up. our best goes out to your family. nicole: thank you. charles: we were down 100 points at one point. maybe that mentality is out there. college, it keeps getting more expensive. more and more people just cannot afford it. the fault on student loans are. here is the question, are we seeing a student loan bubble that is beginning to burst? >> absolutely. remember when president obama said he would simplify things? 90% of student loans are now guaranteed by the government. sallie mae and the other private lenders that represent 10% of student loans require credit history. a lot of the credit is bad credit. investors were looking for some kind of yields. they are going into the subprime student loan. when

they have mostly depositors and so it is more specific to cyprus and cyprus is not that important and the feeling is somehow they'll work it out. i think what the markets are telling you today is that they can handle this. it is an interesting intellectual precedent, though. cheryl: a lot of russian, wealthy russians have money parked in cyprus banks so you've got, you know, folks in germany, spain, et cetera saying, wait a minute. this is a bailout for wealthy russians. >> if this bank deposit tax passes by the cyprus government, they would lose $2 billion to this tax. about a third of the deposits in cyprus are from foreigners so you can imagine they may see a lot of people pulling out money on thursday. that's key. the e.c.b. stepping in with liquidity on thursday if there's another run because there was an a.t.m. run over the weekend. e.c.b. is so key here. e.c.b. providing liquidity so the banking system doesn't collapse in cyprus. cheryl: note this morning said that this shows us there is no plan in europe and that this region is still destabilized by bailout, no bailout, no pla

lori: no, go. >> i was just going to say about cyprus. lori: about cyprus. >> i think it is important for us to put in place what's happening in europe because for the first time we're actually starting to look a lot like smarter. we being our government, our central bank, than the european central banks and their disparate government as well as that of the e.u.. this business of trying to confiscate 10% of deposits in cyprus was pure lunacy. the kind of misjudgment that can create immense problems, unforeseen consequences and i think we'll see it. if russia steps into cypress, again we've got to keep this in context, 1.1 million people, mostly greeks, do business mostly with greeks but a third of the deposits there are russian. these folks have, you know, if they end up doing a deal which russia bails them out, the e.u. will be set back tremendously and there will be reverberations but i think we have to make it clear. there will be no contagion to the united states. lori: i just want to remind our viewers and i just got a note from nico

cyprus is an exercise in abjec failure, and then the cyprus government said, you know we over promised we over sprint, so we're going to take your money and run. it reminds me the song ♪ ooh, take the money and run ♪ neil: that is pretty good. >> it is out of control, we should beefrightened as americans, we need to go, us people who work for our money, we need to go to an island and create a good nation, it no laughing matter, it says your hard earned money can be snatched away by a snap of the finger by the government. neil: this is spooky, john could we're watching the guards outside. when go i to an atm machine, do rarely do i see guards or soldier, unless i'm with sean hannity. but you know it is unsettling, and the calmness that is greeting this, everyone was just numb. this is like weird, that is all. >> i think the whole point is nobody is going to stick up for the rich, and certainly not the russian rich with 68 billion euros in their banks system. and about 20 billion is russian companies who are there not necessarily for money laundering but because they have a double ta

one euro in cyprus is worth one euro in germany. ashley: we saw the euro come back a little bit today. we had not the mass panic feared in cyprus. also decent german economic data. where does the euro go from here? >> that is good question. what is happening right now your europe is closed and most of europe won't open again until tuesday. this is longest period of time of time euro markets are closed. this is end. month. end of the quarter and japanese fiscal year. ashley: that is lot. >> by the end of the year i expect the euro to be down by 1.20. before we get there we could get a little bit of a bounce. market is short the euro. they're selling it on any news. we could get a short-covering bounce. ashley: amount of shorts out there, mark, not as massive as you might think given everything going on. >> part of the problem, that people are negative the euro. that is not so positive the dollar. we're getting benefit from default. we had strong economic data. thing i warn people about. most recently the economic, economists talk up

speaking of hurt, cyprus. that's been the story of the week, and through all those discussions we've had one main question: can it happen here? we have to ask, how close are we to something like that happening here in america? >> it's a big story, and you're not going to have the economy return to the way it ever was. charles: no. >> no time soon. and watch the euro, because that effects all of us. >> it can. and it already is in terms of inflation, in terms of fears of what the government might do if we get a financial crisis in this country. because if things start to get dicey, what are you going to do? you're going to at least withdraw part of your funds and look for weak banks, pull out and spread your deposits to a firm of blanks. >> they're going to keep things going as long as they possibly can until something picks this economy up x obviously, in my opinion, that's going to have to be some kind of bubble. it's something that they're waiting for. >> if countries go broke, your money is not safe, and am

cyprus, causing these ripples these concerns, tiny gdp . and yet one bank observer said this, if spanish and italian bank deposit irwake up tomorrow, and say they could tax my deposits too the potential for an international run on the banks is a high-risk. when people say things like that, this is someone who is an expert at banking. who actually does spend a fair bit of time studying these institutions, what should people be thinking about? maybe another option for investing ? >> behides savings, here in u.s. where you are not getting anything, we're -- like we get the question all of the time, it just, a good portfolio has a diverse set of assets whether it is commodities, real estate real , stock, international, and emerging or bonds it is properly allocated and risk managing of that portfolio, the buy and hole is not necessarily great for investors when investor see market swings sometimes their behavior is suboptimal, they might buy too high or sell too low. gerri:hat one product do i buy now? >> i would go to afternoon add -- would go