Credit Suisse and the European Outlook

This is ugly folks...

 “Extraordinary” things need to
happen by mid-January to prevent progressive closure of all euro
sovereign mkts, runs on even strongest banks, Credit Suisse’s
Jonathan Wilmot says.
• Market pressures may effectively force France, Germany to
strike “momentous deal on fiscal union” much sooner than
currently seems possible, or than either would like: Wilmot
• Only then will ECB will agree to provide necessary bridge
finance: Wilmot
• Italian, Spanish 10-year yields spiking above 9% for short
period “not something one could rule out:” Wilmot
• "Quite possible’’ will see French yields above 5%, bund yields
rise during “critical fiscal union debate:” Wilmot
• U.S. bond yields may fall – or at least not rise – despite
improving growth data through end-year: Wilmot