Let's Look at Cyprus From The German's Point Of View
Anyone see the Flash PMI's from Europe?
France Composite Output Fell to 42.1 - 4 year low
Eurozone PMI Composite fell to 46.5 - 4 month low.
Maybe Germany has decided the writing on the wall can no longer be ignored. Cyprus was the test to try and shove the mounting debt problem on to the common man via a blatant tax grab rather than the backdoor methods currently in play. It didn't work. At a minimum, Cyprus 100K account holders will get their money.
Spain, Italy will all need help - that's a fact. So will France but that's not even mentioned in public yet.
Germany won't do it. They benefitted from the Euro absolutely but they can't save it. So they're bailing and letting the Eurocrats and Cyprus Government take the fall (or at least try to).
Yes I understand. I didn't explain my thought properly enough in that I know the head of the Eurogroup has already accepted blame for the decision to try the levy. My ramblings here were simply that Germany is telling the Eurozone group that enough already, they won't/can't bailout the rest of Europe all the time. This forced the Eurozone to try something radical, and somewhat dangerous it seems.