"Credit-Default Swaps Soar" --Bloomberg
Garbage in, garbage out I say. And the sources of the 'recovery' were inflationary garbage. Here come the first manifestations:
"Dubai World, the government investment company burdened by $59 billion of liabilities, roiled markets around the world yesterday by seeking to delay repayment on much of its debt. The dollar’s slump to a 14-year low against the yen prompted Japanese Finance Minister Hirohisa Fuji to say his government is watching currencies “very closely,” while traders said the Swiss central bank sold the franc after it climbed to the highest value against the euro since June 24.
Is this it, the beginning of the unraveling? When you consider that it took more than a year for the last enchilada to unravel after outward signs began popping up and officials began trying to hammer them down like whack-a-moles, you think that it could be. Funny thing about symptoms though, they tend to get rationalized, swept under the carpet and twisted in some bizarre way as bullish fuel during mania. As in 'look, the market is no longer over bought... it's a BUYING opportunity.'
And the herd will believe it and possibly propel this to new highs one day. Then, out of nowhere too many of these FrankenMarkets incur too many fatal hits, and the whole mess just wheezes and declines in the initial lurch toward the opposite of today's hyper-greed.
Alternatively, maybe this is it and while we Americans and other Thanksgiving celebrants enjoy our turkey, the entire system is led into deflationary round II by a small outpost in the interconnected global FrankenMess.
The other component is of course the USD. The moment global casino patrons feel that the scam is coming apart, the game of musical chairs shifts to FIND A SEAT mode. And the ones that find a seat will be resting their butts on cushions stuffed with dollars.
Happy Thanksgiving to all who celebrate!
