Cyprus: Run, Banks, Run!
Disclaimer: I have no money in Cypriot banks, only a savings account in the USA. It's a fairly large-ish sum of money (though not large enough to qualify for Cyprus' ten percent confiscation rate) because I have been living cheap and squirreling money away for several years now, in hope of one day buying a non-bubble-priced house. Also: as a freelancer with an unsteady income, I know damned well the importance of having a fat emergency cushion to catch me if I fall.
As an American who would like to one day buy a house to live in without taking on exorbitant amounts of debt, I am already miffed by the American mantra "A healthy economy requires ever-rising housing prices, because current homeowners who wish to sell are obviously the only Americans with financial interests worth considering." I do not agree that a constant (but allegedly low) rate of inflation is a good thing. So I'll admit: I do have a dog in this fight, regarding the question "Should the economy encourage people to be savers or debtors?"
I disagree with these policies, but still, I kinda-sorta understand the rationale behind them, understand why some economists are pushing for higher American home prices, or support a constant rate of inflation. But I do not understand the rationale of taxing Cypriot savings accounts, and basically teaching all current Cypriot adults the lesson: "You must never, ever trust your money to a bank, because the government will raid your account anytime it needs money." Why the hell is this supposed to be a good idea?
I don't see anything about a similar tax on stock or investment accounts. Not that I'd support a reduction in Cypriot stock portfolios, of course ... but at least a partial confiscation of Cypriot investment accounts would be less regressive than this confiscation from plain savings accounts.