It looks like due to the European bailout, we are "risk-on" again. Well, it looks like there's a good reason to join the bulls on this, as it shows that Europe doesn't have the same political problems that the US has, or if they do have these problems, they will at least work with each other for the better good. I still have my doubts that European banks will be able to go out into the market and raise 106 billion euros of capital, but all that matters is that for the time being, we can quit focusing on Europe and start focusing back at the US structural problems (eg no job growth)
Also, it will be interesting to see what the ISDA says about whether this triggers an event thereby making credit default swap payments. If this triggers CDS, we should know pretty quickly who's holding the risk.
No comments:
Post a Comment