Too Small To Fail? Cypriots Don't Wait To Find Out; Modern Day Run On Banks

Reuters is reporting that if Cyprus wants a bailout, folks have to pony up 10% of the money in their bank deposits. The Cypriot financial sector is eight times the size of the Cypriot economy (which would be hard to demonstrate on a Venn diagram).

In a radical departure from previous aid packages, euro zone finance ministers want Cyprus savers to forfeit up to 9.9 percent of their deposits in return for a 10 billion euro ($13 billion) bailout to the island, which has been financially crippled by its exposure to neighboring Greece.

The decision, announced on Saturday morning, stunned Cypriots and caused a run on cashpoints, most of which were depleted within hours. Electronic transfers were stopped.

Wanna bet we see a run on banks in Spain? Soon.

Wanna bet the US markets plunge tomorrow?