In response to:

Paul Krugman Wins Nobel: Best Supporting Liberal Playing Economist in Cyprus

David4 Wrote: Mar 28, 2013 11:36 AM
What is the difference between a Jeroen Dijsselbloem bank recapitalization, and a bank failure? What is your answer, John Ransom? I suggest that with a bank failure there is a clearer connection between mistakes, and their consequences. The first solution to the mess is very plain: Don't get into the mess in the first place. Several years ago when the money flooded into Cypriot banks the bankers response SHOULD have been to lower the interest rate, so that the flood would be much reduced. Remember, deposits are a liability for a bank, something dangerous.
mshreve Wrote: Mar 28, 2013 12:35 PM
CYPRUS wanted to be the worlds PREMIER destination for money. They simply proved the old adage "the more you earn, the more you spend".
TimR Wrote: Mar 28, 2013 7:04 PM
mshreve: Cyprus' banking sector was 7 times its GDP (gross domestic product). Luxembourg has a banking sector 22 times its GDP. Malta? ha. Cyprus was by far NOT the PREMIER destination for money.That is why the MOF of Luxembourg is now FREAKING OUT telling Europe: Hands off our Banking sector!http://www.nytimes.com/2013/03/28/business/global/were-not-cyprus-luxembourg-asserts.html

It’s becoming increasing clear that the latest European financial Crisis-Without-End is largely an exercise meant to grant government more power to steal from citizens. Don’t expect for the phenomena to remain in Europe, either. Obama, John McCain and others who head up the Bad Idea Brigade will likely import it to this side of the world, very soon.

These things, you see, tend to travel from the continent, through England and then to the USA.

Providentially for the Bad Idea Guys, while the European Union (EU) busied itself with stealing money from depositors to “save” Cyprus for the...