Saturday, November 26, 2011

Slow Saturday

Having a nice quiet weekend after the holiday. Quiet can be very good.

I wrote a post for the iBankCoin Blogger Network today. Why not swing by and check it out? You can leave a comment there and vote from 1-5 stars. Here it is:
Why You Should be Trading this Market
The Blogger Network is a really cool feature. If you ever wanted to put an idea out there, this is the easiest way for it to be seen.

Reader Watchtower asked in the comments section about the recent yield blowouts of Italy, Spain and Belgium and how this relates to the Euro as a whole. I was thinking about that this morning and I tweeted the following idea:
Thing about bailouts/backstops/guarantees is market will make you show the whole hand; era of jawboning is over, it's show or go now.
I think that market is pressuring the ECB now very hard (Hello Germany!) to go the "unlimited" route. Once you start intervening the market players are going to push the envelope as far as possible. That's what is causing the yield jumps, it's not that Belgium will go bust any sooner or later than a month ago it's just pressure being placed via that avenue. Remember that CDS is now a serious question and without that protection (real or imagined as it is) yields are going higher. It's a risk premium.

Have a good night.

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