Cyprus gambles – and Europe should pay

An update on this

The parliament in Cyprus has rejected the deal that would impose a levy on every bank account – even after the government proposed to exempt account with less than €20000. There wasn’t even one member of the parliament voting for it.

Now I read a comment in the German online edition of Tagesschau saying how amazing it is how Cyprus is gambling and now expecting Europe to pay without forcing the bank account holders to contribute to the bailout.

But hasn’t it been always that way? All the financial troubles we have seen come from gambling with other people’s money – risky if it is your own, but not if others have to compensate for the losses (taxpayers etc).

That seems to be true for Cyprus’ situation as well. But then, what is so unique here?

That’s what they said, and the deal (the levy, that is) is one-time only.

I can’t see anything unique here, and the way to come up for the losses by the common people while the beneficiaries have saved their gains out of reach by everybody else happens every time. Maybe the proportion of the problem is and the way to deal with it differs in some fashion, but then every situation like this is unique.

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