The Market Ticker notices that German banks are threatening the liquidity of the global financial markets as a result of the Greek situation:
The curve blowout this morning in Greek debt has been cataclysmic; of course CNBS is only mentioning it in passing, and so far the European market isn’t reacting “too badly.”
We’ll see about that – how much of their debt is now sitting on bank balance sheets with a mark-to-market loss of how many billions due to the coupon shift upward? Oh no, we better not talk about the black hole opening up on bank balance sheets (again)….. that might be a problem eh?
Just remember that right up until Lehman blew up the market, while it had its ups and downs, didn’t react “too badly” either.
42% worthless assets. Keep that number in mind. It’s going to blow up sooner or later; the market can’t be pumped far enough or fast enough to refloat those underwater properties.