Cruel Twist Of Fate...

Maybe. If we are lucky.

I have written in the past that sovereign debt CDS has grown faster and has eclipsed Emerging Market CDS.

Bloomberg is running this story this morning.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aWu6fxqwwg_U&pos=7

"The Markit iTraxx Financial Index of credit-default swaps exceeded the investment-grade Markit iTraxx Europe Index by 9.25 basis points"

How in the world can the banks be expected to be bailed out when governments themselves need to be bailed out first? The banks will have to stand in line ahead of sovereigns to get bailed out it looks like. You cant expect governments to prop up banks when their own finances are in shambles.

So the only way I think Too Big Too Fail gets erased from the lexicon of banking is if a bigger and larger entity needs a bailout first. Maybe the banks will realize that they need to get their ducks in a row and control their excess's when its government that goes to the tax payer first.

I would never have thought I would see the day.