The ECB and the US Federal Reserve have, in a way, turned the next page in the Lehman script tonight! The ECB is pumping 750 billion Euros into the markets through a kind of “pandemic QE”. The Fed’s next step is to allow the US money market to function (to further facilitate short-term financing of companies). Nevertheless, stock markets in Asia have sold off. Especially commodity countries and commodity currencies are coming under strong pressure. Why? Perhaps because the markets have looked behind the curtain of Potemkin villages constructed by the central banks? Today will be decisive as to whether the ECB and the Fed can still control things – or not. If not, the tsunami will continue unchecked.
There has been a lot of talk of inflationary concerns about the sharp sell-off on Wall Street, but there has been almost more talk of the events surrounding the VIX, the upside crash of which […]
Mario Draghi had said in his press conference today that it was extremely unlikely that interest rates in the eurozone would rise in 2018. But more importantly, the market valued his repeated assertions that the […]
Are the stock markets facing a tsunami? There is a great sense of concern about the almost undetectable economic impact of the corona virus in China. Wall Street is partying after the WHO praises Beijing […]