The Fed and Cyprus: James Grant on Two Bad Ideas

`` "the importance of the Cyprus news is an idea," says Grant.  "And that idea is that to the authorities, your money is not necessarily yours, if it is needed for the good of the state. Right?  So, in a pinch, what has been demonstrated in Cyprus is that ... there will be capital controls. There will be this Orwellian and truly chilling phrase, a stability contribution. A contribution, mind you. So i think that idea is now out, and it cannot easily be put back. And people ought to take the measure of this."''