It is incredibly stupid to tax small saving accounts without warning. Honestly, do you really WANT to encourage people to keep their money in their mattresses?
I agree that the large saving accounts should be taxed without warning. Think of it like when the Russians encouraged South American countries to nationalize industries. The thought of having an industry nationalized made the US and European investors into people who actually thought of the social impact of their profitable acts. And the Russians will only lose a percentage of their Cyprus savings, rather than the entire amount.
Russian investors have turned the Cyprus banking system into their private banks. They may even be using the Cyprus banks to launder money.
In any event, no one can force the citizens of Cyprus to guarantee the banks. Iceland refused to guarantee that stupid Icelandic internet bank. Since the large depositors caused the mess in the Cyprus banking system, they should pay the price.
The Cyprus mess was caused by going after high profits, such as Greek loans. Even the Russians have to learn. HIGH RISK means that you can lose your ENTIRE INVESTMENT.
Since the Cyprus bailout will prevent the high savers who caused the problem from losing everything, they should at least pay SOME of the cost.
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