One nation, under debt, with serfdom and poverty for most of us.
Sunday, September 4, 2011
There are some disturbing signs that interbank liquidity in European markets has essentially frozen up. The first print of the EUR-USD shows the Euro falling off a cliff. For those of you who are still in the markets, batten down the hatches. Something big is going to have to be done; I look for The Bernank to step in forcefully at some point, quite possibly tomorrow. I expect the Fed's "swap lines" to be used extensively this week. Worse, Angela Merkel's CDU Party was crushed in a bye election this weekend by a German electorate fed up with her endless bailouts, and this will serve to limit her ability to act decisively this week. Look out.