There is tendency, and I am guilty of this sometimes, to compare what we are witnessing today with 2008. It is the most recent crisis but I do not think current story will develop in similar fashion. I do follow the money markets, I do follow comments from banks about their liquidity situation but I do not the problem lies with banks.
This time is different and we need to watch governments and their decisions. It is always hard to say where the trigger for the next crisis will be. This time will not be the banking sector rather a stupid government decision. And this time around unfortunately for some banks they will have to bear the cost.
But it is is worth keeping an eye on the money markets and banks as they can be the channel transmitting the current crisis to the real economy.
Surly Trader pins recent developments in the money market against events leading up to the 2008 Lehman Brothers default.
Also, a bit of surprise the US takes a tougher stance on EU’s debt problems, Bloomberg.
On the markets the day or two of calm should be used wisely and to the maximum. Most importantly do not be fooled.It is not over yet.