Cyprus and the sell off

Well, I suppose it had to happen, the market needed an excuse for a sell off and events in Cyprus gave them as good a reason as any to pull back a little. The question now is whether we are entering into a period of sustained selling, which to some degree after the recent rise in stock markets would not necessarily be a bad thing. The question as always when a down period starts, if indeed that's the case, is how long will it be for?

The Cyprus financial crisis and the events towards the end of last week tell you a lot about how conspiracies start and you can understand why. The decision to place a tax on savings/bank deposits for everyone is an extreme example of David Cameron's "we are all in it together" mentality, when in reality we are not all in it together. Some of us didn't con the system and don't see why we should pay to bail it out in these ways.

Taxing everyone in this way and giving them in return shares in dodgy banks, treating everyone to a bit of the pain of austerity is not only grossly unfair, but also counter productive. It has brought back the spectre of bank runs, the fear that other countries with much greater problems will try the same, who's next? Greece? Spain? Italy?

The conspiracy side of it comes from the belief that TPTB (The Powers That Be), whoever they are, have deliberately done this to Cyprus to test the water. Cyprus is a small country, where any public revolt against this may be controlled, if necessary by force. The country has a history of military coup, rule by force, so if this turned out a disaster they know how to control things. It would be more difficult to do that in Spain or Italy.

However, if they were to get away with this tax, then a precedent has been set. Financially it might work, but that doesn't take away the fact that it is totally, morally wrong. Politicians have a habit of using precedent to do things again once they see that it "works".

Taxing everyone for the mistakes of a financial elite that took us all up the yellow brick road to their fantasy land of prosperity will only disgust anyone who feels that this is another kick in the balls of justice and what is right and wrong. The people of Cyprus are right to be outraged and the politicians should take note of the potential for trouble that they are unleashing in taking such measures.

But this is also the problem with conspiracies, are they really that stupid? Or perhaps "they" want more bank runs? The start of a new EU crisis? You can go round in circles on this one, but this tax is madness in its attack on Mr and Mrs average, the little guy, the person who was prudent and honest while others conned the system for all they could get pre-financial crash and carry on conning the system today. The former are the people we should be on the side of and its the latter that should be pursued, financially and legally.