Have We Reached Peak Panic Yet?

It should be obvious by now that financial markets have been in a panic for the past two months over the increasing likelihood of a Greek default, and all the death and destruction that could follow in its wake. In my posts I've tried to quantify the panic by looking at a variety of market-based indicators of the panic: the zero rate of interest on T-bills, the record-low level of Treasury yields in general, the very high level of implied equity volatility, the very high level of the ratio of implied volatility to the 10-yr Treasury yield, the very high level of Eurozone swap spreads, the generally low level of market PE ratios (as contrasted to the record-high level of corporate profits), the pronounced underperformance of Eurozone equities relative to US equities, and the huge declines suffered by Eurozone bank stocks. For an even greater variety of charts and figures, I suggest this post from Pater Tanebrarum, in which—among other things—he makes it absolutely clear that European bank stocks are collapsing. (HT: Tom Burger)