Now we can put behind, for few days, the Greece – EU “fits” and get back to serious things: market developments.
Immediately after the Merkel-Sarkozy statement markets started a small rally. Euro strengthened, equities stopped their fall and reclaimed a very small part of what they lost during August and first part of September, Market Watch.
And then reality set back in.
EU warned of credit crunch threat, Reuters
Just by inertia alone I do expect at least for the first part of the day European markets to at least mimic happiness and trade higher.
That means you have some time to read.
Here are some links.
A friend of mine wrote this piece on the money market constraints (you know I have a soft spot for this issue) : Déjà vu—U.S. Money Market Funds and the Eurozone Debt Crisis
Reformed Broker: Correlation as long-term pandemic
Why I like California and New York more than France: they are both less risky than France now.
As I was writting this post I heard this question addressed to an analyst on Bloomberg TV: why do you expect a global recession. Shouldn’t the question be: When do you expect global recession?
happy reading and trading