I find it very disturbing to see what they are doing with Cyprus bank system. Not only because our company was affected. Not only because they destroyed the economy of the island. Banks account for 70% of GDP for the country, and banks are all about trust. As soon as you destroyed customers’ trust you can close the bank. The bankruptcy is only matter of a short time perspective then.
It doesn’t matter now whether the actual bailout tax will be imposed or not (parliament refused to do so for now). The trust already has been compromised and on the first day the banks will open (if ever), the panic will do what it usually does – businesses and people will withdraw their money. So default on Cyprus can be expected with 99% probability. But this is not what bothers me most.
The most troublesome observation: European authorities readily violate own laws. They just decided that expropriation can serve as a workable solution. The greatest example of how unprofessional regulatory actions can affect the lives of people. Italian, Spanish and German people out there, do you think they will stop if there will be a need to rob you the same way?
Lenin and other criminals in Russia back in the beginning of the 20th century invented something they named “revolutionary necessity”. It was above the law. It was a cause for robbing and killing people. Modern European authorities did not hesitate a moment to do the same. Are they any different? Go, figure.