Lack of knowledge on this Cyprus discussion is rampant and the media are all repeating eachother without doing any investigation. The Cyprus situation is so totally different from the rest of the Eurozone economies, that I would not be surprised if the Eurozone would not bail out Cyprus, if they do not come up with the 5.8 bln themselves, and let them leave the euozone without any regret.

Did you for instance know that for the last years (up till a week ago) you got 7% on your deposit in Cyprus, while the rest of Europe got a meager 1-2%? Did you know that over those 7% no revenue taxes were paid (at least by foreigners). In short, this was an accident bound to happen and the Cyprus government and bankers for years refused to make the necessary reforms until the loss of capital they had invested in Greece put them into this situation.

It is now up to the Cypriots to decide whether they want to reform or continue their Cayman like status with Russian oligarch money and tourism making their day. They may decide to not suffer some pain and get out of the Eurozone and the Eurozone would be fine with such a decision. After all, their economy only constitutes 0.2% of the Eurozone. For the last five years most people in Europe have seen their standard of living detoriate due to austerity measures, but in Cyprus halleluya continued. If Europe would bail them out for the full 100% without the Cypriots also taking some suffering, that would have been a very stupid thing to do.

The Eurozone did not demand the Cypriots to levy depositors, it just told the Cypriots to come up with the 5.6 billion in recapitalization themselves and then provide 10 bln in loans on behalf of the Eurozone. The only mistake they made is to not make clear that they would not accept any levies on deposits below the €100.000. That was a decision made by the Cypriot government, because they feared to charge the Russian oligarchs too much by charging it all to the above €100.000 accounts and the repercussions that might have brought about.

The Cypriots are playing victim now, but did anyone hear them complain when during all those years they received 7% on their savings deposits, while the rest of Europe was suffering? Things are not always as they appear.