I agree with the Russians

[malaise]

Afterall Western banks laundered drug money and got away with a slap on the wrist. This is expropriation of savings by Russians by Western powers - led by Merkel.

Additionally this is quite similar to Iceland in that it is the people of Cyprus who are also being squeezed after the banks and political elite fugg up yet again.
http://www.guardian.co.uk/business/2013/mar/19/eurozone-crisis-cyprus-bailout-government-vote

Russia: Cyprus banking system could collapse
The political tensions between Europe and Russia have escalated this morning, after the Russian envoy to the European Union suggested that Cyprus's banking system could collapse.

In rather blunt language for a diplomatic, Vladimir Chizhov described the bank levy as "similar to forceful expropriation". Speaking by video conference to reporters in Brussels, Chizhov went on to predict social unrest and bank runs in Cyprus, and perhaps beyond.

Chizhov said:

This decision is dangerous because of possible social repercussions in Cyprus and it is dangerous in terms of triggering possible domino effects in euro zone countries

And there is another threat. When the banks open, people will rush to withdraw their deposits - that's another threat - and then the whole banking system can collapse.

[CanonRay]

1. I don't often agree with the Russians

but they are 100% correct on this one. What an idiotic and illegal scheme to defraud people out of their savings, all to pay off bondholders. The government of Cyprus should fall if they let this happen, and the EU should go down with it. If I had money in a bank on Cyprus I'd be standing at the front door.

[reformist2]

2. 70% of money in Cyprus banks is *not* Russian.

I still think this Russian thing is a red herring thrown in to make the proposed "tax" more palatable - it doesn't.

[pampango]

3. As long as those with large bank accounts pay the fee regardless of nationality, I am fine with it.

Owners of small bank accounts should not have to pay a fee. They were not the cause of the problem. Letting rich depositors off scot-free does not seem very liberal to me.

Putin is certainly standing up forcefully on behalf of rich Russians who have deposited large amounts in Cyprus outside of their own country. I would not support Obama if he spoke up on behalf of rich Americans who deposited in the Cayman Islands if a financial crisis developed there.

[reformist2]

4. You're ok with some rich people paying, but not all rich people?

Thom Hartmann calls it a "stupid idea."

[pampango]

5. I said all those with large bank accounts regardless of nationality should pay.

If that is not clear, I meant that all rich people should pay. How is that saying that the same as saying "some rich people paying, but not all rich people?"

I did not say that only Russian rich people or Cypriot rich people or American rich people should pay. They should all pay.