So in the grand scheme of stupid, greedy, impulsive, and just plain "damn the consequences" ideas by stupid bureaucrats/bankers/politicians, the government of Cypress thought they could simply steal 10% of everyone's bank accounts overnight. Because apparently stealing via inflation is simply "too bloody slow".
The government is now backpedalling faster than anyone has ever seen before due to two reasons, 750,000 pitchfork and torch wielding Cyprots who for some reason were stupid enough to think that money in Banks was actually safer than burred in you garden and the Russian Mafia who probably owns half the deposits we are talking about.
Does anyone really think the Russians are going to accept a 10% tax as the cost of doing business? Let's put this in perspective, if the Russion mob decides to "disappear" you, you stay disappeared. Finding Jimmy Hoffa would look like a game of Where's Waldo by comparison.
The only question now is whether the bankers who came up with this scheme can get themselves out of it before either the mob, or the Mob, gets a hold of them.
Oh and if it isn't obvious, this is going to do "Bad Things" to the value of the Euro which might actually in the end do the same thing by effectively taxing everyone who holds Euros via inflation.
Oh yeah, Europeans are going to be buying Gold and Silver, and it will take tremendous effort to prevent bank runs on the fiat held by Italian, Portuguese and Spanish banks.