This is 2008 1300AE - no clutch, just shift version. What has me puzzled is that the bike came to a stop at a stop sign, and only after I released the brake lever and applied it again did it fail. Then I tried the rear and that was also failing.
The other symptom is that before this, while riding in 5th at 2000 RPM giving it gas did not seem to increase power. It was as if I had not done anything with the throttle. Kicking it down a gear picked up the RPM and suddenly the bike accelerated nicely, particularly when I dropped it into 3rd. But the RPM had to be around 3000 for it to respond correctly.
Also, the front level was collapsing totally. The rear was collapsing, but if I really pressed all the way hard I had a tiny bit - just barely enough to keep the bike from rolling easily. I thought I had a broken brake line but there was no fluid coming out anywhere. The bike had stopped normally. It was only after I rolled forward a little to see traffic and re-applied the front brake, and then the rear, that I realized I had no brakes at all.
Thanks for the comments above about the front calipers dragging. I have not been riding much so it may be that I forgot to watch foot position on the rear brake and was dragging it. However, I have some play in the back brake just to avoid that issue. It still does not make a lot of sense to me since if the rear break is applying pressure to 2 of the front pads it should not be using the front reservoir. ie. the rear pedal has it's own reservoir and when I bled the brakes 2 years ago it was a separate operation for front and rear. I need to look at the schematics to see how the rear applies the front brakes. I thought it was the front that applied pressure to the rear. Might be getting my bikes confused.
The idea of not having any brakes front or rear is scary. A failure like this should never happen, even if you mess up one brake set by burning the pads/rotor or lose a brake line. I am going to look at things later this weekend and then have the Yamaha shop check the bike and prepare for a $1500+ bill. I expect it is the ABS controller (maybe that got affected by the hot brake fluid?) I will have them do a few other things since the only thing I have done on the bike in 10,000 miles is change the oil every season/3000 miles and changed the coolant and brake fluid 2 years (4000 miles) ago. I am at 30,000+ now. Still, I am now wondering if I want to keep a bike that can have both sets of brakes fail at the same time. That is bad engineering. At this point, my smile as I hit 75 on the highway might be a bit tremulous.
P.S. Probably not relevant: For oil changes I used Mobile 1 10w-40 with Mobile 1 filter this spring and last year. Yamaha oil and then Rotella 5 for diesel once in the past. Mobile 1 gives better clutch feel when I twist the throttle and the automatic clutch starts to grab.