Cyprus collapse yes, the whole country budget is about the size of a half months US BOND buying stimulus program, the $6B in question is ridiculous. This is what is wrestling the market to the mat to the tune of half trillion in equity disappearing over the past three days.
Perhaps it does so because there are lines being drawn which the Germans won't cross to bail out any more wayward socialist economies. The bank account tax scheme certainly seems to be a harbinger-like indication of things to come.
The global debt based system has taken too many shots to the head and body and is weaving like a drunkard. Consequently, the mat sure does look comfortable now because from there there's no further to fall.
Part of me welcomes this with open arms...about 95%.
There is certainly a frothy pile of dollars on the line in that equation. Enough so that if the Euro ceased to exist the fed would be hurt seriously as well...unless they went and hit control-alt-delete.