Cyprus initiated a surprise assault on the precautionary savings of their own people.
This was not a Bernanke style slow moving financial repression against risk free savings that is meant to stir up animal spirits and force risk taking.
This is a nuclear war on savings and wealth - something that will likely crush animal spirits.
Right now, I would argue that the risk of an EMU exit by Cyprus is real. And this is much more of a clear and present danger than anything happening in Italy or Spain. And even without passage of the tax, the potential for a bank run is very real.
--This market has been running on no fear close to lows of 2007, Europe back on table at least a healthy pullback
If there was a back run in many countries it will be a long summer