This Cyprus deal is a real red flag. Deposits over 100,000 Euros will pay an UNSPECIFIED amount to pay for the bailout. The problem is that this is outright confiscation. If this works, it will enable others to try it out and is it not popular to “make those who can pay, pay”? Desperate situations call for desperate measures and Cyprus is in a desperate situation.
This tax the 'rich' is an easy sell and yet strikes at the core of capitalism. Either you believe that you are better off under a system where you control more of your fate, or else you want to be able to feed off the work of others. Put it to a vote? Of course most people will vote for more goodies for themselves. Hence the danger to our representative government in the first place. Once a government can just take whatever it wants, the next step is to set itself up so elections are of no real consequence.