Reminder: It's Not Sovereign Debt That Folks Are Freaking Out About, It's A Run On The Banks

We ran this chart earlier, but it’s worth running again, considering the Europe-wide carnage we saw today.

This is not just about sovereign debt. This is about a major freakout about the banking system.

The word from S&P is that Greek debt holders will take a major haircut on their holdings, and that means serious problems for banks. (See the full list of victims here)

Ths surging CDS of Portuguese and Spanish banks is a major red flag.

From CMA Datavision:

CMA euro bank cds

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