With Brexit triggered I thought the establishment/powers-that-be would try to downplay its impact just like they ignored the Greece vote last year but with Cameron's resignation it appears there is no eject button on this one. A pro-brexit campaigner takes over (Boris) and steers the ship vs the murky waters of the EU.

The EU will have to eat humble pie here if an amicable exit and subsequent engagement solutions are to materialize in the future. The Euro and EU will have very strong headwinds in their path. The pound is not solid but in the race against the euro, the latter is the ugly sister.

I fancy anti-EU sentiments going mainstream now. Countries that have been on the receiving end of EU's austerity measures should now view an exit and/or an outright defiance of Brussels a lot more favorably.

Italy and Spain have their banking mess to deal with. Spain elections come up shortly and a major decision at the ECJ falls due next month on the floor mortgage-rate clauses. Italy's PM may have to embrace the anti-EU stance if he is to save face and probably the economy. The ECB's solution on this has been to extend and pretend as exemplified in its decision to grant an extension(18 months) to the deadline on % sovereign debt held by local banks otherwise the Italians would have had it rough.

These two countries and how they handle their economies will be pivotal coz I don't see the banks dodging a serious meltdown in both. Couple that with the NIRP executed in most EU countries and the ensuing turmoil will be of epic proportions(other than banks;pension funds and insurance companies get to have their time in the cleaners)

Other concerns that have been stewing under the radar for example the dollar and euro pegs, junk bonds etc may reach crisis levels as the flight to quality gathers momentum. There is also an outside chance that the IMF could pull the plug on the Greece negotiations since the perfect smoke screen is up and running.

http://www.bloomberg.com...capacity-of-1-1-billion

Deutsche bank issuing a couple of rebuttals on its balance sheet position. Add the fact that they have openly decried negative rates by the ECB and BoJ...that lehmann scenario is playing out almost to perfection.

Credit Suisse is quickly following the same path. Turmoil.