A corrupted banking system, such as the one found in Cyprus should not be bailed out by anyone. It is time for fiscally unsound entities to simply dissolve. Germany any other rich and productive European powers should not be made to foot the bill for banks and governments that cannot keep it together.
I believe that banks should fail when they can't pay their depositors. Given the experiences in the US with failed banks and bailouts, I believe that is proof enough to show that bailouts are failed policy. It is pointless to fund these banks artificial because it simply allows them to continue with their bad practices.
I believe that the world should let the country of Cyprus have their banks fail. I do not think that other nations like the United States or those involved with the European Union should do anything to help Cyprus. The nation of Cyprus should let their banks fail and better the nation some other way.
I think it's always a poor decision to allow a nations banking system to collapse, the banking system is based on trust and if people see that we allowed Cyprus banks to fail then they suddenly start to get uneasy that perhaps others in trouble would be allowed to fail and people start becoming uneasy.
We should not let Cyprus banks fall under. If we do there will be wide-ranging troubles in the markets across the world. While the US should not foot the majority of help -- the powers in Europe should do that -- the US should still give some kind of aid to lift them out of their crisis.