French CDS Hit Escape Velocity

Remember how prohibiting the use of naked sovereign CDS was supposed to make the CDS market tame as a docile lamb? Well, as it turns out, the bulk of the marginal moves were not CDS driven, but simply basis traders putting on, and taking off hedges. Ignoring the fact that many desks have experienced "Boaz Weinstein" like events in the past month (perhaps even Mr. Basis "$4.7 billion AUM" Trade himself), it seems that CDS is now simply tracking moves in cash. And those moves, if you are France, are not pretty. As the chart below shows, French CDS have just hit 88 MPH and are about to go back to a calmer, more peacful time, when everyone could buy and sell stuff using the French Franc...