The Cypriot banks did what all banks do. They gambled. They borrowed money by taking in deposits as well as selling bonds, promised to repay, and then invested in assets they were sure would pay off. These assets included lots and lots of Greek government bonds.
European Central Bank (ECB) Chairman Draghi has a very big agenda. Armed with only a printing press, he's pledging to directly bail out the GIIPS (Greece, Italy, Ireland, Portugal and Spain) and indirectly bail out their economies.
There is not a single official in the U.S. or Europe brave enough to take on the bankers and say what needs to be said: If you want to gamble, be our guest. But do so on your own time, in your own home, and on your own dime.
Ask red Republicans and blue Democrats what they value most and their answer will be the same -- their children. Strange, then, that both parties have devoted the postwar to spending enormous amounts of their children's money.