Ever since I first met CU, he has been warning that Spain would bring about the demise of the Euro; and we may be about to find out.
Whether the Spanish crisis goes the whole way, this type of event is akin to a Lehman or an Enron - a trigger for dominos to start falling. Systemic risk, in other words.
And of course Mervyn King has just been given responsibility for 'macro-prudential oversight', the cure-all for managing systemic risk. Let us hope he's been thinking about what it really means, he's had well over a year since the Turner report highlighted macro-prudential supervision as a missing art - in the UK, at any rate.
Distressed Spanish properties all round.
PS: see that Osborne has pulled off a 'coup' in persuading Hector Sants to stay on. Hmmm ... not sure about that one.
PPS: notice how many very well informed stories Pesto runs about the FSA and how wonderful it is ...? He's a great one for his sources, our Robert.