Little of this distinguishes Cyprus's meltdown from Iceland's or Ireland's, or even Spain's.
The big advantage for Italy is although it has a lot of debt, it is not creating debt quickly (like Greece, Spain or even the UK).
In order to stave off default by one or more large countries like Spain or Italy (and possibly even France if either of those do fall over) someone, somewhere, needs to purchase large amounts of the bonds of those two countries.
Even if the eurobond moment has not yet arrived there are others suggesting that the main bailout fund, the European Financial Stability Facility (EFSF) should be increased in size so that it could support Italy, Spain, or even Belgium.
This may make investors increasingly nervous about the likelihood of other highly-indebted nations, such as Italy, or those with weak economies, such as Spain, repaying their debts or even staying inside the euro.
It's also because although Germany could probably afford a 50% writedown of what it's owed, given the strength of its economy and public finances (the writedown, excluding the Target2 credit, would be equivalent to just over 1% of its GDP), the same probably can't be said of Spain, Italy or even France (where the writedown costs would also be around 1% of GDP).
Yes, there are myths from all countries, and even fantasy literature written in Germany or Spain or elsewhere, but the market has been historically dominated by the Anglosphere, and I think is rooted more in the myths of the Anglosphere specifically than in Christianity more broadly.
Even neutral countries, however, participated quietly on one side or the other, Spain and Switzerland closer to the Axis Powers, and the others helping the Allies.
Even in the hardest-hit economies such as Spain, Ireland, or Portugal, groups of healthy small- and medium-size businesses and middle-class households exist that constitute good risks.
But it may be worth remembering that the aggregate public-sector and private-sector indebtedness of the UK is higher than for any eurozone country, even Greece - and our annual government deficits are significantly greater than those of Spain or Italy.
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