The New Must-Follow, Bellwether Index

That would be France’s CAC-40. It’s down about 2.5%, with four hours left to go in the day’s action. As you can see below, it’s become wildly volatile of late, as investors realise that of all the rich European countries, it’s the one with the big PIIG exposure. According to IMF estimates, exposure to Southern Europe accounts for $781 billion of $3.57 of total French banking assets.

Anyway, when you see these kinds of moves, Nicolas Sarkozy’s fist-banging threats of leaving the Euro suddenly make a lot of sense.

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Photo: StockCharts.com

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