Cyprus government instigating a run on the banks and a collapse of their banking system

[Cylinder Head]

I don't think the GDP of Cyprus is the focus here. As roberth said above, it's more about the reaction to it and if it indicates government behavior like it will continue. Every reaction is indicative to one degree or another.

Economies of scale, Cyprus has 10bil in total deposits, most of which is "stashed" money by wealthy Russians and ME'ers. Draghi guaranteed deposits for the big boy banks. Nobody who owns Italian sovereign debt has been asked to take a 53% haircut.

If you're looking for a reaction, the FTSE was up, Euro only fell .02% to the dollar and gold was down today. Are those indicators of an impending crisis? I'd avoid Euro banks right now but I would double down on Sanofi, Kone, Reckitt, BAT.