The United States and United Kingdom plan to run an exercise this coming Monday to see how well they might deal with the fall out of a supposedly hypothetical Too-Big-To-Fail bank collapse.
Taking part will be U.S. Treasury Secretary Jack Lew, and U.K. Chancellor of the Exchequer, George Osborne, as well as the Federal Reserve's Janet Yellen and Bank of England Governor March Carney.
Here in the states Monday is Columbus Day, and is a bank holiday, with banks closed. I tend to get a little nervous when they run "drills" like this. Let's hope they keep it all as an exercise and nothing spills over that will effect anyone's personal banking.
The fact that they even feel the need to have such an exercise speaks volumes about the state of our global economy, which is tenuous at best, and is delicately poised to fall into chaos by just the slightest little tipping point.
I'm guessing this exercise is a trial run in order to be ready for the real thing, which apparently they must be expecting sooner rather than later.
