(Zerohedge) The Spanish downgrade aftermath: SPG at 7%. Well, not quite 7%…. 6.998% as of 5am Eastern. A new record. We give it a few hours before 7% is breached once the news hits that Moody’s has cut Spain’s three biggest banks by 1-3 notches as explained yesterday. Also, CDS at a record 611 bps is not helping either.
Meanwhile, the currency markets are substantially off kilter as the Greek Elections loom. OANDA has decided to close their currency trading operations on Sunday becuase of the major risks associated with such a potential shift in EUR/USD as this election might spur. Also from (Zerohedge), EURUSD has dropped to more than 2 sigma cheap to its swap-spread-implied fair-value (though as we have seen in the late summer and fall of last year this can remain for longer periods) as the ‘chaos’ premium hits the Euro.
Everything is tee’d up for a crazy ride, and everyone’s ticket is about to be punched. The end has indeed begun, not with a bang, but with a wimper. Soon, noone will be able to deny what is happening – globally or here at home.
HERE WE GO, FOLKS…
