Big Hole in your Wifi-Security

Security researches have found a huge hole in the protocol of the encryption routine WPA2.

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WPA2 is used in all recent models of wifi-routers, usb-sticks etc. to make a (secure) connection between the end-point computer and ultimately the internet.

If you want to get into the (as currently known) details, you can read it up here at arstechnica.

edit: The researcher's website is now online: https://www.krackattacks.com/

Am I affected?

Broadly speaking: As a normal user, if you use Wifi at all, yes.
Older security protocols also have holes, so there is no fallback. Arstechnica:

The vast majority of existing access points aren't likely to be patched quickly, and some may not be patched at all. If initial reports are accurate that encryption bypass exploits are easy and reliable in the WPA2 protocol, it's likely attackers will be able to eavesdrop on nearby Wi-Fi traffic as it passes between computers and access points. It might also mean it's possible to forge Dynamic Host Configuration Protocol settings, opening the door to hacks involving users' domain name service.

Theoretically e.g. your banking is still safe as long as you make sure that you are https-connected and the certificate is valid. However it would not be the first time that certificates are (whatever method used) faked, stolen, or human errors used like a domain that is written with a typing error. You think you are on www.your-bank.net but instead you are on www.your.bank.net, and are you sure you would catch that?