As usual...

...the popular and reactionary press is looking at the Cyprus problem as some sort of catalyst for the End of Time.

We are talking about a 10 Billion Euro bailout.  AIG alone was an order of magnitude higher than that.  Reports are stating total deposits in Cyprus of around 100 Billion...anybody look at the Fed's balance sheet and the assets it soaked up?

On an absolute basis, Cyprus is a small player.  And it is precisely because of this that rules will be bent/broken.  It is also clear that the ECB will fully bail out its "own" citizens (see Ireland, etc.) but is sending a message that tax havens for non-citizens will receive harsher treatment.

But we are speaking about a small player.  It is also unclear as to whether this "bailout" will actually happen given domestic push back in Cyprus as well as Magnanimous and Benevolent Mother Russia acting as White Knight (half of that 100 Billion in deposits are Russian).

So I don't see the End of Time for the Euro just yet.