News out regarding swap lines between BoE, BoJ, ECB, SNB and Fed... Basically we have reached Defcon 1 as far as liquidity in the European Banking sector is concerned thus the Fed is basically flooding the Eurozone with Dollar liquidity.
Immediately, the Dollar is diving against everything except metals. Stocks are running higher with European Banking stocks skyrocketing.
The biggest question is whether the market will now realise that indeed we have been sailing along a knifes edge and whether this action is in fact the preparation before a Greek Default ? What will be the effects of such an event on the other PIIGS especially the two 600 lb. gorillas in the room Italy and Spain ?
Whatever the coming events, this is not a market for the faint hearted nor the inexperienced.
Good Luck, and keep it tight.
Thursday, 15 September 2011
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