us banks in big trouble?, page-35

I'm not so sure, Timber. The CDS of Australian banks aren't far beneath the European banks (chart below)... and we know the trouble they're in and how their share prices have collapsed. The trend is most important. Clearly the market is concerned what this crisis means for our offshore borrowing costs, banks passing higher interest rates onto customers despite what the RBA may do, and what that implies for our housing market and bank balance sheets.

Our proprietary unweighted index of 5 year CDS on eight major European banks (BBVA, Banca Monte dei Paschi di Siena, Societe Generale, BNP Paribas, Deutsche Bank, UBS, Intesa Sanpaolo and Unicredito)

http://www.acting-man.com/?p=10693#more-10693