Euro zone finance ministers forced Cyprus' savers to pay as much as 10 percent of their deposits to help pay for a bailout of the country's troubled banking sector , a move which is expected to raise 5.8 billion euros. In return, the country will get 10 billion euros ($13 billion) in assistance. run on banks in Cyprus and maybe other countries too. " FEAR"
Cypress has been a banking haven for those wishing to keep funds away from their own government tax collectors. I wonder how much Apple lost? Apparently this is a very special case. CNBC was suggesting that Spaniards and Italians would fear that their own deposits would be taxed, which I think is a very wrong way of looking at it. Rather, Spain and Italy are probably happy that they won't be paying to bail out corporations and individuals wishing to avoid taxes.
The EU was wise to send the message that there's no free lunch. Depositors can't get high returns, low taxes, and complete financial security, all at the same time.
Of course, it's inevitable. The currently global/financial system is a very big house of cards. Banks made bads loans and then forced taxpayers to bail them out. So, the poor choices are protected by the lender of last resort. No matter how poor investment firms and banks act, they now know that gov't will support them no matter what. it was only a matter of time before the bankers figured out they could force gov't to steal money from account holders. Oh wait, the did this with MF Global when they stole the sequestered money of investors. Just wait. Go research Gerald celente.