Maybe this is a terrifically ignorant comment, but it seems like the government mismanages their finances, as a result, they want the everyman to throw away 10% of their bank deposits?<p>WTF?
So the Greek bonds get a haircut and in the process the Cyprus banks are thrown under the bus. At the same time Germany, the Netherlands and Finland enjoy the capital influx of insurances and some fonds, who are regulated such that they can only invest in the Eurozone. These capital influx creates a nice boom, low unemployment and ensures the reelection of the idiots who did throw Greece under the bus in the first place.<p>This crisis would be so funny, if it would occur on any continent I don't live on.
Rather than recapitulating the same discussion of the general issue, might be better to consolidate it in this other story that's been on the front page longer: <a href="https://news.ycombinator.com/item?id=5387228" rel="nofollow">https://news.ycombinator.com/item?id=5387228</a>
bjornsing's blog post is a good read, and gets it right imho.
<a href="http://conscienceofanentrepreneur.blogspot.se/2013/03/whats-wrong-with-cyprus-bailout.html" rel="nofollow">http://conscienceofanentrepreneur.blogspot.se/2013/03/whats-...</a>
lets not forget that Cyprus has recently discovered natural gas and possibly oil in its exclusive economic zone expected to be exploited in the next few years. call it conspiracy theories but a weakened Cyprus is easier to manage..
It sounds like they can't get the votes to approve it, which makes sense. It's gotta be political suicide. Either way the banks are going to be destroyed.
Why good financial management is not a competitive factor amongst banks?<p>As in: bank with us because we are financially sound (instead of: because we pay higher interest, or whatever). It's not happening yet.