Markets are currently rallying in reaction to the short-sale bans enacted in Europe. Time will tell if these bans ultimately prove effective seeing as how when the US banned the short-selling of financials in 2008, they proceed to collapse over the next few months. Investors are usually correct in estimating that a trading ban is nothing more than formal confirmation that there is indeed a problem. With banks borrowing more from the ECB in recent days and less from each other, we have yet another sign that European banks are getting nervous of each other’s risk. But at least for today, equities are solidly in the green. ZH
They explained why I was schizo to call this a risk off day. I must be part of their reader demographic
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