There is NO capitalism without
1. Moral Hazard (If you do not trust your neighbor do not put your money in his bank)
2. The rule of Law - the primacy of Private property
All else is socialism / dictatorship / slavery of one level or another
Part 2 (Cyprus):
In the case of Cyprus, not only are their banks failing, but nobody wants to loan their government money. So the government, who has no money, cannot pay out on their own version on the FDIC. Failed socialism, in other words.
If the Cypriot government decided not to bail out their banks, their customers would lose all their money. Maybe they could sue and get something out if it. This would be 0% socialism.
Instead, Cyprus has chosen to bail out its banks with EU money instead of their own money. We’ve moved from national socialism to international socialism. As a condition of the loan of that money, it’s not paying out 100% on the accounts, it’s paying out some amount less. This is actually more capitalistic than paying all the money back - you’re making the bank’s customers take some of the heat.
The ludicrous alternative is that large foreign (Russian) investors get bailed out at the expense of Cypriots, who will be paying off the EU loan with their taxes.
Saying that the Cyprus bailout should be 100% is like saying that TARP would have been great if only it was bigger. A larger bailout is not less socialism than a smaller bailout.