The answer is in the question.
Investing wealth is not introducing money to the Cyprus economy. Spending money there or paying taxes does that.
Because all those rich people pay bugger all tax. Not much different to why America is struggling.
They played with the money alright and they lost. With the downturn in the economy of the European region since the GFC and of course the entire credit crisis since then many banks all over the world have been struggling. But the crisis in Cyprus is not just that the banks are struggling, it's the government who is broke and they had proposed to tax people savings in the banks to help bail them out. It appears though the Russia has said no way to that and will probably step in to save them. It'll cost them less to bail out the country than pay over 10% on all the money they have deposited there.
No one really cares about Cyprus. It's a very small country and only accounts for 0.5% of the European economy. What has been significant here is the concept of taxing savings to bail out the government. That is what has caused reverberations around the world. The question is if it could happen in Cyprus could such a thing also be contemplated in much larger economies like Greece, Italy and Spain which are also struggling not to go bankrupt.
Personally I think this youtube video explains everything just about everywhere:<br />
What a load of nonsense.
Ah yes. There's always one - even as the greatest economies on this Earth conjure up trillions and quadrillions more in funny money to keep the ponzi scheme turning just a little bit longer. I'll prepare for the crash while you do whatever you please, and we'll let time decide who is right.
Seriously don't watch that video. It's conspiracy laden nonsense with no basis in reality at all. The issue in Cyprus is simple. The wealthy do not pay tax. It's the same issue in Greece, Italy and Spain. It's part of the culture in the Mediterranian region. Plus they often vote in ridiculous politicians who are corrupt as hell and who couldn't manage an economy to save themselves. Decades of this nonsense and finally the money is running out.
For the sake of those with open minds, you can also watch:
or this one: http://www.youtube.com/watch?v=xjmCiDB_72g
or this one: http://www.youtube.com/watch?v=2I0QN-FYkpw
or this one: http://www.youtube.com/watch?v=TP1J3HXOZIc
There's certainly no shortage of nonsense on the internet sprouting unsubstantiated conspiracy theories plunge. I'm sure you could find plenty more.
No worries Hirafu. The links are not for you. I wish you all the best.