This one is coming from the Financial Times this morning, while snow is shutting down UK Plc
One bank to buy them all, one bank to find them
One bank to price them all, and in the darkness bind them
Tolkien, we remember…
As this week will be the week of ‘bad bank – good bank’ (how can a bad bank be good?) we have to admit that the idea is not bad at all – this is a huge bail-out of the banking system at the expense of the tax payer. The government will misprice the assets they will buy from the banks and take them off the hook.
The European experiment seems to be far more interesting than the American version. In Europe all governments have to act on their own behalf while the gnomes in Frankfurt will supervise this exercise, titled: swapping cash for trash.
While banks and governments are discussing the state of their broken empires, we try to deal with these markets.
Let me show you how one of our favorite indicators, the sell and buy volume indicator was pointing to lower markets already last week. Thanks to marketvolume.com.
One bank to buy them all, one bank to find them
One bank to price them all, and in the darkness bind them
Tolkien, we remember…
As this week will be the week of ‘bad bank – good bank’ (how can a bad bank be good?) we have to admit that the idea is not bad at all – this is a huge bail-out of the banking system at the expense of the tax payer. The government will misprice the assets they will buy from the banks and take them off the hook.
The European experiment seems to be far more interesting than the American version. In Europe all governments have to act on their own behalf while the gnomes in Frankfurt will supervise this exercise, titled: swapping cash for trash.
While banks and governments are discussing the state of their broken empires, we try to deal with these markets.
Let me show you how one of our favorite indicators, the sell and buy volume indicator was pointing to lower markets already last week. Thanks to marketvolume.com.
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