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7 Things You Need to Know About the Shocking Cyprus Bailout Crisis That Has Everyone Freaked Out

Fears of bank runs, a Lehman-like collapse, and widespread panic are building.

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On the other hand, if Parliament takes the deal, then a rescue will happen, but under terms that put everyone at risk. The message will be out that depositors in the euro zone can get hit and people in Italy, Spain and Greece will be particularly freaked out. The possibility of a bank run in those countries will grow.

7. How will America be impacted?

International banks like Bank of America and JPMorgan Chase are part of global networks. But deposits in American banks up to $250,000 are insured by the Federal Deposit Insurance Corporation. While banks pay something for their ordinary participation in this program, ultimately it is Uncle Sam – meaning you and me – who are on the hook when the FDIC needs backstopping. So our too-big-to-fail banks look set to profit from the federal government they love to denounce, as anxious depositors around the world move money into insured US banks.

Lynn Parramore is an AlterNet senior editor. She is cofounder of Recessionwire, founding editor of New Deal 2.0, and author of "Reading the Sphinx: Ancient Egypt in Nineteenth-Century Literary Culture." She received her Ph.D. in English and cultural theory from NYU. She is the director of AlterNet's New Economic Dialogue Project. Follow her on Twitter @LynnParramore.