I posted this prior to the open:
Liquidity indicators keep on tightening though.
I pre-empted this article from Felix Salmon by a good few hours!
But, of course, Salmon’s article is much, much better (goes without saying, really).
It is a must-read (IMO).
The picture painted in Salmon’s article is bleak indeed. Really bleak.
Which leads me to wonder … why is the S&P500 holding up so well?
And also to wonder, if the situation in Europe does improve, the will is found and the necessary actions taken, what is going to happen to the S&P500? I would think therefore it will go MUCH higher.
BTW, thats not a prediction/forecast/expectation/whatever you want to call it. It is me thinking aloud and forming what appears to be a reasonable conclusion based on the available data and evidence.
Cue dreadful European headline LOL.
And LOLs aside, dreadful European headlines are more likely than not.
Check this out too:
On Italy-Germany spread and Spain-Germany spread widening:
This shouldn’t be happening after this weekend’s good political news.