Cyprus, Iceland, and German bail-out fatigue

``Credit default swaps (CDS) on Cyprus debt have jumped to 674 basis points, the sort of level that preceded the EU rescues of Greece, Ireland, and Portugal. The CDS were trading in the 300s earlier this month, according to Markit... I don't wish make some mechanical linkage between bank-to-GDP ratios and underlying risk (the devil is in the details) but this over-grown banking sector has shades of, well, Iceland.''