Is the Cyprus bank levy a crude approximation of bankruptcy?  Actually, the bank levy is probably better for depositors than bankruptcy….
The reason it’s probably better than bankruptcy is because in return for haircuts, Cypriot banks will get cheap money from Eurozone members.  It’s possible Cyprus bankers take all the extra cash in bonuses and payouts to other investors but I have my doubts.  You can call it a bank levy, but from the depositor’s point of view it’s a haircut, and haircuts are part of normal bankruptcy.  

European elites have been moving toward something like my speed bankruptcy proposal for quite some time, maybe they’ll cave, we’ll see.  
Cyprus again reminds us that if you embrace a middle ground between pure default and pure bailout you will be attacked by everyone.  And since for the foreseeable future pure default isn’t an option…..

Two Cyprus narratives: 1. Stupid justice-driven elites vs. financial stability.  2. ‘If not now, when?’ vs. hyperbolic discounters.

There’s something to be said for the latter narrative.  The right day to start going to the gym is always tomorrow.  
Some people tell me a US sovereign default is inevitable. If so, we should be borrowing a lot more.  #ZeroTax

4:  In response to the previous tweet, I’m sure a lot of people will say, “Yeah but he left out [important thing X].  To them I respond: