re: If people cannot trust the banks to put cash will they not move it to the markets?

This is a bump in the road. If you see BoA or Cap One go down, then you should start worrying. Until then, there's no reason to create more panic than what already exists.

There will likely be a bit more withdrawals over the next few days than normal, but once people realize their bank isn't going anywhere things will calm down again.

Also, people are insured up to $250k. How many people do you know who have more than $250k in a bank?