The proposed bail-in would not solve anything either. Even if EU provided the full loan and not a single depositor lost a penny directly it would still not solve the problem.
That would be a worse solution. The EU-taxvictims have nothing to do with this mess. It's less worse to make the bank clients' lose, than to force random people that have nothing to do with it to pay.
The EU shouldn't lend anything. The bank shareholders should lose all their ownership. Cuts should be made, starting by risky-investment-clients like bondholders, and then eventually account holders. The new ownership should be transferred to those who suffered such cuts in proportion to the amount they lost.
I don't know any better way to deal with a bank failure. Forcing taxvictims to pay is definitely worse. Inflating the money supply to save banks is even worse.
The problem is also in the fact that wast majority of the victims are non the wiser and unable to comprehend trivially simple concepts that are hidden behind of all the smoke and mirrors.
Yes, people have been tricked into believing that their bank deposits are "guaranteed". That's just impossible, nothing in life is guaranteed, starting by life itself. But if after all these turmoil in the euro-zone you still believe your bank deposits are "guaranteed", I can only be sorry for you.
It is pretty much an equivalent of everyone forced to bet all their money and all their annual income every year in a casino where the house has 3-10% edge.
hehe, sort of. You're not really forced to have a bank account, but it's hard to live without one. And all banks practice fractional reserves, protected by the central bank, so your analogy has some good ground.
But hey, that's part of what Bitcoin is here to solve, isn't it?
