Just as we warned, not only is it time to panic but the panic is 'contagion'-ing over into the sovereign risk market. European banks are in freefall, down over 4.3% broadly, crashing to 2012's "whatever it takes" lows.

European bank risk has gone vertical... Today's spike is the largest since April 2010

TBTF banks are all seeing credit risk explode - to 52-week highs and beyond...

Slamming European bank stocks back to near "whatever it takes" lows...

Dragging the entire European stock market down 24% from its highs to 16-month lows...

And that risk is syetmically crushing peripheral sovereign bond markets...

Time to panic? You betcha! All eyes are focused on the synthetic run on Deutsche Bank...

So since Europe unleashed their "Bail-In" regulations, European banks have utterly imploded with Deustche most systemically affected as it seems more than one person is betting that Deutsche will be unable to raise enough capital and will be forced to haircut depositors on up in the capital structure.