Yeah, we're not panicking. it seems the US media is tho' !!
The hand of Fox to put down socialist Europe ?????
Don't see the problem, it IS an issue that Cyprus has a skewed banking setup with few large holders in country and lots of outside money held in country for "other" reasons
Trying to come up with a solution that recognises that is important and the suggestion that the model of a tax on the larger amounts doesn't seem unreasonable. The alternatives are the nation funding to protect foreign investments.
This is no different really to Iceland banking crash. They TRIED to let foreign money in the country for a quick buck to fall. BUT had their arms strongly twisted up their bakcs by many - mostly the UK who are full of financial carpet-baggers !! But they did let the banks fall.
Compare Iceland with others now. Those who protected their banks are in stagnation and carry huge public debt through state ownership of bank assets. Iceland let them collapse , the investors lost lots. NOW they are growing. They don't have silly financial tools being created to support ongoing unsafe banks. Cleared the problem by one swift(ish) act. We (UK) are bleeding debt to cover the support we gave the shareholders and large depositors of the UK banks. I'd rather have seen a 10% rake off the top of my bank holdings as a one off rather than this increasing costs, increasing tax, decreasing confidence and growth we have now.
Go for it I say.