At the end of the day you have two camps: debtors and savers.
You can't force a tractor factory to make a factory once it has closed down ie: you can't force a debtor to pay debt they want to default on.
The only way to rebalance the system is to screw the savers. It was always going to happen, the question is whether by stealth via inflation or overtly. It looks like they are taking the overt path.
The problem is the savers saving in the instrument of debt: currency.
I'd like to add one thing, that those people weren't just hoarding that money. What happens now is that Cyrpus is losing out on some badly needed investment.
