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US Financials' Default Risk Spikes To 2-Year High
US financials' stocks are tumbling as 'investor' hopes for a rate-hike (and some dream about better earning potential for banks) drag XLF (Financials ETF) back to Oct 2014 lows. However, as have noted before, it is the message of the credit markets that has been correct all along (and stocks continue to catch down) as today's jobs data (and Glencore asset sales) poke Financials credit spreads to their highest since Oct 2013.
Credit leading the way again...
With Morgan Stanley's CDS rising the most in percentage terms post-FOMC...
And TED Spreads have blown to 3 year highs...
Charts: Bloomberg
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Quick, get Hank Paulson on the phone. Time to secure another $750 bill for the banks before we need tanks in the streets.
That feel of owning FAZ.
I love the smell of napalm in the morning.
BTW - My screensaver is Paulson, Rubin and Geithner laughing hysterically about that joke that was so awfully funny (to them). The one about income inequality and whether Paulson had narrowed it or widened it. Just so, so funny.
Who knows? Maybe it'll result in him getting shot someday and (other) people will think that's funny as well.
NSM, dropping like a rock! I take some credit....
The DOW got close to 16K and then magically bounced. It's probably going to be up and down like the proverbial hooker's undies but it would be very gratifying if it ended the day below that mark.
LOL ... Dow below 16,000 ... your nuts. This past month has but only proved this steaming pile of dog shit we call a market is manipulated. Every time it gets to that point it magically jumps back up past it.
Its the hard limit that someone has set and apparently at 16K or greater there is no news, no story .. but if it drops to 15K that is bad.
Well im using the steaming pile of dog shit manipulated market to short rallies above 16000 and when we rally back up to 16000 i will short more, im quite convinced were going down and hard, this isnt going to be pretty, the only concern i have is how low will gold and silver go? i have none yet but im looking to load up a truck, here in the UK there is sheeple everywhere, no one i speak to understands whats about to happen, they are clueless, they deserve all they get utter muppets thinking house prices will make them all millionaires lol