European banking system looking screwed again re: Ireland sovereign default a near certainty (update 2)

Ireland is close to a sovereign default. IMF on standby. Should send a suitable size banking crisis across Europe, with the ECB/IMF having no choice but to allow a restructure of sovereign held debt.

Going to be bad. A Lehman (2008) like event. Yield chasing on 'junk' bonds, FX by institutional/s piling in a lot of risk will cut very hard. To think the Scandinavian 'darlings' (Sweden) have bought a shit load of Greek high yielding 'crap'.

Ireland's CDS's (note spike in September 2010)


Irish Bond yields 2yr