Cyprus tries to contain itself, U.S. economy expands

People gather in front of Laiki (Popula) Bank as the country's banks re-open following 12 days of closure on March 28, 2013 in Nicosia, Cyprus.

Banks in Cyprus have just re-opened for the first time in two weeks, although tough restrictions are limiting how much cash customers can withdraw and what they can do with that money. Some analysts say these capital controls could threaten the fate of the euro.

Diane Swonk, chief economist with Mesirow Financial, joins Marketplace Morning Report host Jeremy Hobson to discuss whether the crisis in Cyprus will spread and how the U.S. economy is faring.

About the author

Diane Swonk is chief economist with Mesirow Financial, based in Chicago.
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The US /Feds bailed out our banks, borrowing from the taxpayers and their offspring. Are the Cypriots doing something different-just taking the money upfront? and from many people who have not paid taxes in their own country.
Cypriots with $130,000 in bank are protected. Is that not unlike our FDIC protecting $200,000 in a US bank? Are Cypriots with $130,000 in multiple banks protected once or Multiple times? Are the first $130,000 protected for folks who have more than that amount in one bank? Does this affect banks only? Do Cypriots put retirement money in Vanguard/Fidelity like organizations and are those mutual funds affected. Most people in US do not keep more than $100,000-200,000 in a bank.

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