Cyprus breaks the faith with bank depositors

While you were sleeping, the government of Cyprus pulled of a caper worthy of a banana republic — namely, they clipped DEPOSITORS to pay for a bailout.
As you read, people are desperately queued up at ATM machines:
bank run cyprus
It is one thing to stick it to junior bondholders in Spain, Ireland, Netherlands and elsewhere, BUT IT IS ALTOGETHER SOMETHING ELSE FOR THE EU TO ALLOW THE WHACKING OF DEPOSITORS.
The game theory from now on is, no matter how good the deposit insurance is offered, no one will believe it.
And if this triggers a bank run across the Eurozone, here we go again.