Loading ...the next few days to weeks should test the domino theory. At least four financial dead bodies have already surfaced and more are sure to follow soon. The financial ripples will tell us just now big the Rock was that hit the pond. The losers in the franc debacle are broke and no way to paper this one over. The investment houses are responsible to get the fiat from the losers to the winners. The insolvent losers will simply walk away. The big banks are taking a huge hit to cover the bad bets. Nobody deserves a financial watermelon enema more than Goldman, JP morgan etc.
what assets will the banks sell to cover the losses? Do they have anything other than paper? Volatility is about to become “off the charts” as assets are sold to cover losses. One little problem, who will buy them at any price. The tables are being set up for the ultimate fire sale. The fed will have to sit this one out or risk going down themselves. The Chinese and Russians may even help out by dumping their dollars and bonds. Gold is going to tell us how bad and how sudden the downdraft will be.
we have very few competent leaders in government to facilitate a reasonable soft landing. Our grandchildren will bear the brunt.
Rno