Submitted by: Francis Soyer
To recap yesterdays activity and the Fed move to lower rates on dollar swaps by 50 bps the action by the Fed for European Banks is like giving a band aid and a couple of aspirin when the patient has terminal cancer. The last time such intervention occurred the market rally lasted no more than two days before a massive sell off. I am expecting the same in that the downgrades in credit for the majority of the larger banks both here and abroad will put these banks in dire straits with massive increases in capital / margin requirements for hundreds of trillions in derivative exposure. The Feds symbolic move yesterday is metaphorically speaking is like using an eye dropper when several fire hoses are needed to put out a multi-building fire.
As for news on the tape for today's trading session we have the following:
Secretary of Defense Panetta Urges Leaders to Make Tough Choices:
“I’ve often said … that we govern our democracy either through leadership or crisis, and if leadership is not there, then we let crisis drive policy in this country,” Panetta said. “Today I worry that in many ways we have lost the trust of the American people in our system of government, because they are not seeing the dedication, the hard work, the sense of sacrifice that is important to our democracy.” “Now, dammit, if there are men and women who are willing to put their lives on the line in order to be able to defend this country, then surely there have to be elected leaders who are willing to make the tough choices that are important to solving the problems in this country,”
A Brief Market-Oriented Review of Prior Coordinated Central Bank Interventions
GCN's Ted Anderson: Massive Financial Looting by The Mafia Banking Cartel 1/2
Ted Anderson: 2/2
Rick Akerman: Watch T-Bonds, Not the Criminally Insane Dow
Gerald Celente: “Everybody knows what’s going on, they are devaluing our currency.”
Jim Sinclair: "QE to Infinity" and gold at $4500 is coming as sure as death and taxes.
Fed Dollar-Funding Cut Shows Limits of Action on Europe
Bank of England Governor Mervyn King King Says Spiral Facing Banks Looks Like a ‘Systemic Crisis’
ECON Calendar for December 1, 2011
