Doncha just love the way folk can grab a story, understand less than one tenth of it, then use it as justification for their personal hobby-horse.

There is not the remotest comparison between the situation in Cyprus and the situation here. It is primarily a local issue, where the banks invested heavily in Greek bonds (they are, after all, Greek), and took a haircut on those along with everyone else. They then welcomed an influx of deposits from Russia, which seemed to fill the hole for a while. But eventually the whole edifice imploded.

The proposition to suck funds out of the accounts of individuals was colossally stupid, on practically every front. But because they had no bonds to support their capital position, only Russian deposits, they were kinda short on options. What this will do is to give Ms Merkel a bit of a jolt, and apply the necessary pressure to come to a more intelligent solution to the immediate problem.

It is also noteworthy that the Cypriot parliament voted comprehensively against the measures. Not one single vote in favour. What would be anyone's guess how our own parliament would have voted if a similar situation had arisen here?

In an election year.

If anyone can see any commonality whatsoever, between the situation in Cyprus and our financial position here in Australia, feel free to explain it.

But I guess no-one really cares, so long as they can find an excuse to push their narrow political barrow.

I wonder how many depositors in Cyprus will leave their money in a Cypriot bank now?
Or any other bank for that matter.
It will have to cause a bank run I would think and how far that spreads is the big question.
I hear that some are pulling their money out of Australian banks already.

Kiwi's are looking at doing the same.
http://www.scoop.co.nz/stories/PA1303/S00306/national-planning-cyprus-style-solution-for-new-zealand.htm

This guy sums it up beautifully :)

Warning, foul language ahead.
http://www.youtube.com/watch?feature=player_embedded&v=YDXtHsz2q6

Pericles, I did have my tongue sneaking into my cheek just a little with this topic, but only a little.

If you can't see that this government in Oz is as "colossally stupid" as the EU bureaucrats the IMF or the Cypriot banks, you are as stupid as them. Did you not notice the stupidity of the carbon tax, or the mining tax? It takes real stupidity to come up with them, & just minor stupidity to copy someone else's when you are desperate.

The real similarity here is the desperation & there can't be anyone more desperate on earth than Gillard right now, not even the Greeks. Anyone now watching the ridiculous spending promises Gillard is now making could only assume she is as stupid as the EU bureaucrats. However it does lend some credence to the idea she is out to cause as much trouble for us, after she is gone, as possible. Cancelling all the promised benefits will be quite unpopular in some areas, & cause the incoming government many problems.

There is definitely a feeling out there that she is going to give us as much of a kicking as possible, before we get to kick her butt. So stupid, or vindictive witch, it doesn't matter much, either scenario could see her try it on.

It's frightening really what lengths some of these politicians will go, in order to get their hands on our hard-earned money.

Who was it that said some years ago now, and prior to a federal election - if Labour gets into power you should all put your money under the bed? We all laughed at the time, but I do wonder with all that's happening, will we continue to do so

The mathematics makes sense to me:

You start with $100 in your bank account.

End of Year 1 you have $90.

End of Year 2 you have $81.

End of Year 3 you have $73.

End of Year 4 you have $66. Which is enough for your return taxi fare to the polling booths on election day.