IMF Head Flying To Spain

IMF head Dominique Strauss-Khan is flying to Spain "to discuss global economic developments with the Prime Minister, and to consult with him on developments in Spain, including the government's economic policies and reforms" according to Reuters. The last time the IMF sent a delegation to a country was on April 15th when the IMF together with representatives from the EU and ECB took a jaunt over to Athens. A month later the country was insolvent. We can't wait for the official denial that this visit has nothing to do with the frozen Spanish liquidity market (like Greece), and that there is nothing to worry about (like Greece), only to end up with a full blown IMF rescue package of the Pyrenean country (just like Greece). This merely confirms the move in PIIGS spreads which despite the joke that is the market moved 10%+ wider on the day. The next domino is about to fall, and no matter how much rumored collusion between two French banks and the Federal Reserve is injected, the EURUSD is likely about to tank. At this point it is wisest to get out of any EURUSD longs, and finally follow Goldman's "advice."

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