Chillin' out till it needs to be funded
Global market correlations are upward of 70% as a domino effect starting Saturday morning across currency and in Asia today, i s unlikely to attract any fresh Cash back into the markets for a couple of Quarters till US economic performance comes back to par.
Engendering the crisis – A couple of showcase events where this could have been panic and cutbacks in growth
In the meantime, banks may start charging for cash deposits as more than $20 bln had been withdrawn from equity funds alone in the week before the Debt deal was signed, led by Bank of New York MellonThe move is however in the Treasuries and Securities Services market, a homeground for securities warehousing specialists like JPMorgan ($2 Tln) and State Street(bet $2 – $3 tln)
..and banks in Italy and Spain fear flight of Deposits to bund Country as fiscal consolidation creates a political storm for Silvio Berlusconi again more hyperbole than substance in both the cost cutting and the dire warnings against, but Global recovery has been setback by three years and even more.
GS is asserting a 1 in 3 higher chance of a renewed recession withGoldman Sachs cutting US growth projections for 2% the rest of 2011 and 2% for 2012 followed by J P Morgan, given that debt payments will absorb some of the cost cutting even before it has been planned
Having already fought against the appreciation of US Treasuries, PIMCO’s Gross continues to lead baying for US hawks questioning dubious strategies like the Cash penalty above