The tail risk of Cyprus is less of a financial issue for markets. Investors will likely turn their attention back to Italy, another periphery problem. Already a month has gone by and the country remains government-less. The formation of a government in Italy will continue this week, and although the situation remains uncertain, most parties appear to prefer avoiding another immediate election. The market problem is that concerns over an unstable government will persist and an early election is always a high probability. An Italian problem flare up cannot be dealt with any Euro-zone bailout programs. Liquidity ... (full story)