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By Jason Stipp and Jeremy Glaser | 03-22-2013 08:00 AM

The Friday Five

Five stats from the market and the stories behind them. This week: 10 billion euros falls short for Cyprus, the Fed stays focused on 6.5%, and more.

Jason Stipp: I'm Jason Stipp for Morningstar, and welcome to The Friday Five: five stats from the market and the stories behind them. Joining me with the details is Morningstar markets Editor Jeremy Glaser.

Jeremy, thanks for being here.

Jeremy Glaser: Glad to be here.

Stipp: So what do you have for the Friday Five this week?

Glaser: We're going to look at 10 billion euros, 6.5%, 6, 20%, and $24.4 billion.

Stipp: 10 billion euros is the size of a loan that Cyprus maybe getting, but it's not enough and that's the big problem.

Glaser: You're right. That 10 billion euros is not going to be enough in order to really bail out Cyprus' banks, and nor did the EU think it was going to be enough.

They offered that money only if Cyprus also is able to find another huge chunk of cash that they would be able to put in, in order to keep their debt-to-GDP getting much higher. And really the only place that they could find that [money] was in bank deposits, and the EU suggested maybe a one-time tax on all accounts and using that money to recapitalize the banks in order to keep solvent.

This was not very popular with the Cyprus people. It wasn't popular with Cyprus' parliament, who soundly rejected this proposal, and is now looking for other ways to get that cash in order to get the bailout that they'll need to stay in the euro, in order to keep their banks open.

It's going to be an uphill battle. A lot of the sources of capital for them are going to be loans, something the EU said they're not open to. Again, they don't want that indebtedness to keep going higher. But I think more broadly, this story just shows that the European debt crisis is really far from over. [The fact that] these little things--small countries like Cyprus that make up 0.2% of the entire EU's GDP--can cause such big reverberations shows just how unstable the relative calm we have right now, and that it won't take much maybe to tilt us back into a hotter fire of the crisis.

The jury is still out if that's going to happen right now; I think it is a plausible explanation that Cyprus really is a one-off, that it's unique, that we're not going to see bank runs across Europe; we certainly didn't see them this week. But it is a reminder that the European debt crisis is far from solved and remains a risk.

Stipp: 6.5%--that's a figure that came in the news this week here at home. It's the unemployment rate that the Fed is targeting. We're not there yet, obviously, but the Fed said it's going to keep on keeping on with the stimulus measures until we get there. What's your take on the Fed's statement?

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