Cyprus is on the verge of an impolsion.

No sooner do the authorities in the Euro zone try to quell one problem, another one comes to the surface. Well, the tiny nation of Cyprus seems to be the point of origin of the latest problem to hit the Euro zone. Apparently, due to the bad loans made by its banks, Cyprus is on the verge of an implosion. And it desperately needs money to keep its banking system functional. And while the funding may not be difficult to find, it comes with a strict rider. Cyprus itself will have to pitch in with around 40% of the money if it is to get the remaining 60% in the form of bailout funds.

And it is here that everything can come crashing down. Since its coffers are empty, Cyprus has hit upon this unique idea of taking a bite out of each and every deposit account in the country and thus raise the bailout money. However, it didn't take long for the stupidity of this idea to become evident. Citizens of the country lined up at cash machines as their faith in the banking system took a huge beating. And there are howls of protests even outside the country's shores. Many experts are already terming the move as a dangerous precursor to how bailouts are likely to be handled in the future. Thus, those who were thinking that we are well past a full blown crisis, a serious re-thinking certainly is in order.