my post last night is already out of date.... 5 yr CDS on the Aussie banks now exceed their 2008/09 peaks, chart below. it's getting ugly fellas:
"Shortly after this article was written, it became known the EU's finance ministers will delay payment of the bailout tranche to Greece to mid November. This means that Greece is almost certainly effectively bankrupt and a 'hard default' becomes highly likely. Recent reports indicated that the government will run out of funds by mid October, which means it won't be able to continue to function beyond that point, although JC Juncker of the eurogroup inists that Greece will be able to continue to pay civil servants until mid November.
Regardless, this decision is certain to worsen the panic in financial markets and could well precipitate the awaited banking crisis in Europe."
