Cyprus marks a new and dangerous approach by the EU

The recent EU idea, yet to be ratified by Cyprus parliament is that all citizens of a country should participate in a bank bailout by having a 10% haircut on their private savings, is a dangerous step that could destabilize the whole EU. Already the ATMs in Cyprus have run out of money and the banks are staying closed tomorrow for fear of a run. No wonder, this is an individuals hard earned life savings, not some high risk investment product. Basically the banks and the government have failed, and the people are being asked to pay individually, and directly not through increased taxes which then would be mitigated for some due to circumstances. This idea may well spread to Spain, Italy and even the UK as government borrowing soars out of control. Even the thought of this could cause a massive outflow of capital to the USA and to US stocks and bonds as EU residents who can, move their money away from danger. Who honestly could blame them?