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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Canuck Dave who wrote (73146)	4/14/2011 6:54:09 PM
From: TobagoJack	Respond to of 217738

in the mean time, just in in-tray acting-man.com Euro Area - Is the Reprieve Over? CDS spreads on Greek and Portuguese debt reach new highs, and the recently diverging spreads on 'not Portugal' (Spain) and other euro area sovereigns appear to have bottomed and are turning back up. Among the possible reasons for these moves one suspect is the strong euro, as well as the ever more public debate about the inevitability of a Greek default (euphemistically referred to as 'debt restructuring'). What makes as of yet not so many waves is the deterioration of the social mood everywhere in euro-land. However, there are two clear trends that can be observed in the political arena: the electorate in the fiscal weaklings is deeply unhappy about austerity measures, and voters in the 'core' nations are unhappy about having to potentially pay up for the bailouts should the guarantees their governments are giving to the ESM actually be called upon to perform. It all adds up to growing anti-euro sentiment. In Germany, Angela Merkel's coalition is losing provincial elections, in France Marine Le Pen's Front National is gaining support and in Finland, the euro-skeptic parties are close to attaining majority support. The euro project could well end up being torpedoed by unhappy voters instead of the financial markets, or more likely a combination of the two. Also included, a link to and a few comments on the IMF's recent Global Financial Stability report that contains a wealth of interesting data. What caught our eye are the doubts the IMF and the BIS are voicing regarding the collateral backing certain synthetic ETFs. It appears the banks are using ETFs as warehouses for illiquid and hard to value securities. The collateral often has no relation to the underlying securities the ETFs concerned are supposed to track. It looks like yet another accident waiting to happen. Charts updated.