Yes the Europe thing is getting very serious. It is exactly what drove the Vix last year.
Hurricane, Earthquakes, Tsunami's, exploding Nuclear Power Plants and even War have little effect on volatility.
Banks! Wow. Banks! Remember the bank is the holy institution of fiat creation. When you have Santander and the others looking like they are going to 0 that is not good. But it is the only thing that can substanitally move volatility.