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Irony of the Cyprus Bailout

By Morgan Housel - Apr 1, 2013 at 11:04AM

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The nation of Cyprus saw its banking sector come crashing down over the last two weeks. The final consequences are still unknown, but the episode is sure to leave its economy in ruin.

There is a tremendous amount to learn from the crash. One lesson is the value and accuracy of stress tests that regulators impose on banks.

In this video, Fool analysts Matt Koppenheffer and Morgan Housel show how 2011's stress tests of European banks completely backfired.

 

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