What The XYZ!
From Peter Tchir of TF Market Advisors
The fact that the global financial system hinges on these 7 sets of 3 letters is appalling and amazing.
If GS is the best and brightest the rating agencies are close to the opposite, yet somehow regulators let them set a ceiling on bank capital and now AAA or AAA on -ve watch could change the shape of Europe?
I still wonder whose face will be on the 1000 SDR bills - I was really hoping to survive without knowing these existed let alone that the fate of the world hung on the IMF's ability to use them. Was the IMF truly ever designed to be involved in economies of the scale of Western Europe? That they are so important to future is scary.
The ECB and FEd have more ability to change the crisis and swap current problems for future problems than any other entity out there. It seems shameful that Ben has more power than the president - at least when it comes to the economy.
CDS - nothing I can say is worse than what most people think and calling for exchange traded CDS will only be shouted down by those who think it doesn't go far enough and derailed by those who have no interest in seeing that happen.
I would have added IIF as another example but that would give them more credit than anyone other than politicians thought they had.
We could be down 40 points on the official downgrades - even though the market has known for awhile the ratings are a joke. We could be up 40 points on the IMF using our money and the ECB and Fed debasing our money. A truly strange world where it won't get truly better until it is really fixed - but too much existing money and power is too interested in keeping the losses off their books.