What\’s really amusing about this is who is saying it

The Cyprus bailout continues to send shockwaves through the financial world, though we confess: We\’re a little shocked at how shocked some people seem to be. The front page of Tuesday\’s Financial Times was splashed with alarmist prose under this headline: \”Eurozone shifts burden of risk from taxpayers to investors.\”

There\’s still no greater taboo in Europe, it seems, than suggesting that government guarantees are or should be limited. Sunday\’s agreement to restructure Cyprus\’s two biggest and baddest banks has their creditors shouldering the cost, thereby sparing euro-zone taxpayers a €7 billion bill. Heresy.
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This is the same principle behind the Cyprus bailout: that investors shouldn\’t think of their decidedly not-risk-free investments as risk-free. That\’s a precedent to cheer in euro zone\’s fourth sovereign rescue, not something to apologize for.

It does rather dent the complaints about it all when it\’s the hyper-capitalist running pig dog Wall Street Journal that\’s saying yes, of course investors in dodgy businesses should lose their money, doesn\’t it?

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