"I think indeed the comparison does not apply because the reaction to Lehman as you may recall was that several markets froze... That was not the case this time."Actually... that's not exactly true is it!!
With knife-catching "value" investors proclaiming yesterday that any dip today would be an opportunity, it appears once again that faced with the reality of Brexit blowback, no one (not even the central banks) are buying the f##king dip). As Bloomberg's Mark Cudmore exclaims "Don't be a hero," to those value-investors, warning that "most of the market is still in denial."
Central bankers should not be treated as wise oracles whose guidance is desperately needed. Instead, we should throw off the tyranny of the PhD’s and embrace the decentralization of power that is desperately needed to allow civilization to thrive. Brexit would be a great way to start.
England’s upcoming vote on June 23rd may be the first of several votes that reveal the deep flaws embedded in the European Union. In particular, Europe’s undercapitalized and overleveraged banks are dangerously exposed to rising political unrest.
They made their way in dribs and drabs. Hundreds of displaced bankers, shuffling up Suffolk Lane to All Bar One and along Upper Thames Street toward the Folly, the only pubs in the City of London open that early on an overcast Tuesday morning. One group of traders was threatened with dismissal after being caught on closed-circuit TV stealing candy from a vending machine.The shell-shocked men and women sipping pints and consoling each other had become part of a growing population. Faced with a toxic blend of zero-interest rates, stiffer capital requirements and a collapse in trading revenue, banks have announced large cuts to their European operations in recent months.
Goldman Sachs attracted more than a quarter of a million applications from students and graduates for jobs this summer, "suggesting fears of a ‘brain drain’ in the sector may be exaggerated as banks introduce more employee-friendly policies." The number of applications from students and graduates globally have risen more than 40% since 2012, the paper adds. This means there is greater demand to get a job at Goldman than there is even in China where recently 1.2 million job candidates applied for 19,000 much-desired govermment positions.