The "deal" will start the disintermediation of the weaker banks in the Euro-zone as depositers pull money out of those weak banks to find homes elswhere. As a consequence loan activity will continue to contract-leading to still declining GDP and higher unemployment. The Euro continues to make lower lows, hit 1.2830 today, should get to 1.15 before the negative feed back loop is broken by perhaps stronger exports because of the weaker Euro.
I don't want to buy ahead of this negative news and flat S&P500 earnings year/year for the 1st Q. 2nd Q shouldn't be any better. Happy to be in substancially cash, a few special situations and NG stocks and let others worry.
Interesting strategy taken to resolve this stage of the Cyprus problem, failing only one of their large banks while leaving the others afloat. One wonders how they picked that particular bank rather than the largest or some combination of smaller players. It's likely fewer domestic citizens were affected by this play.