Updating Monday's view, nearer still is a great discrediting...
And proof is in the hedging...
Shall I babble on, or do you get the picture? This in the midst of technical weakness everywhere.
Now, about the BOJ selling yen ... is that blood I see in shark infested waters? What next? Capital controls? I see, too, the heat on China to float its currency is being turned up a notch as well.
So many imbalances! Such tight constraints on capacity to keep everyone happy. Flight risk grows. This while leverage makes many a highly correlated trade all the more precarious. Should some unwind lead to a scramble for capital, then it will be bye-bye equity.
In parting wonder could sub-prime breakdown be to the securitization market's freeze (2007 - 2008) as another Asian currency crisis is to the collapse of the post-Bretton Woods, floating exchange rate system?
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