The latest Cyprus “deposit tax” fiasco is just the next step in 5 years of wrong-headed global policy moves which have continually moved to preserve and support private investors (bond and stockholders) in bankrupt financial institutions at the expense of regular people and the real economy. Politicians and bankers have colluded to shift the crippling costs of bailing out their financial mismanagement and outright fraud on to taxpayers and now deposit holders.
Steve Keen, professor of economics at the University of Western Sydney, argues that if you destroy the trust depositors have in their bank accounts then you destroy the oil of capitalism. Here is a direct link.
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