At least that's one thing Canada and Cyprus have in common. But there's a more spooky similarity, related to bankrupt banks.

Canada's banks are frequently reported as well-run, stable, safe, which is nice for those of us who store assets there. Those depositing money in Cyprus banks are not so lucky; some of these customers - creditors! - may lose most or all of their money, as the EU and Cyprus governments "bail-in" the banks. Completely different story, right?

And yet, if one looks at the brand new Canadian federal budget outline, on page 145 (pdf page #155), one finds this little paragraph:

The Government proposes to implement a "bail-in" regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital. This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada. Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants.

To translate, as one commenter on zerohedge does, Canada is readying legislation to enable doing exactly the same thing to Canadian depositors as Cyprus/EU have done to theirs.

If the financial crisis gets worse, but before it becomes a full pandemonium, fellow depositors would be well-advised to liberate their funds from the banks, and invest in robust assets. I wouldn't suggest a bank run soon, but starting a casual bank walk might not be a bad idea.