Despite all the 'smartest men in the room' proclaiming that Greece doesn't matter, and Greek risks are "contained", Japanese stocks are tumbling led by bank stocks. Topix Banks Index has plunged the most since Feb 2014 (and 2nd most since the Taper Tantrum in 2013).
"Contained"... Japanese banks down 3.5% - the most in 18 months
It appears - just as we have said over and over - in the interconnected world of repo, ZIRP, and rehypothecation - size doesn't matter, it's collateral chains that matter... and shit's breaking.
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We await the BoJ's decision on how much Japanese bank stocks to load on the back of Japanese taxpayers before we proclaim this a problem.