{"id":278386,"date":"2010-02-04T16:52:00","date_gmt":"2010-02-04T21:52:00","guid":{"rendered":"tag:blogger.com,1999:blog-27954921.post-5165774547799715791"},"modified":"2010-02-04T19:20:39","modified_gmt":"2010-02-05T00:20:39","slug":"markets-crashed-after-mere-thought-about-cutting-life-support-tnr-v-czx-v-wlc-v-rm-v-li-v-vtr-v-asm-v-ktn-v-epz-v-bvg-v-ngq-to-rvm-to","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/278386","title":{"rendered":"Markets Crashed after mere thought about cutting life support. TNR.v, CZX.v, WLC.v, RM.v, LI.v, VTR.v, ASM.v, KTN.v, EPZ.v, BVG.v, NGQ.to, RVM.to,"},"content":{"rendered":"

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A lot of things could be pointed out as a contribution to markets crash today. We will pick one, distant to Wall Street and not so apparent for the investors in North American markets. A lot of tools from today’s FED arsenal were tested out in UK first, be it bail out of banks or QE. King – BOE Governor, always speaks with more clarity in English than other gentlemen here across the pond:<\/div>\n

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“U.K. policy makers paused their 200 billion-pound<\/span><\/strong><\/a> ($317 billion) bond-buying program, matching the median forecast in a survey of economists by Bloomberg. The central bank may resume purchases \u201cshould the outlook warrant\u201d it, the Bank of England said.”<\/div>\n

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In plane English they have tested the patient ability to live without life support – test failed and we can expect QE continued in all of its forms further. We do not expect End of The History again and this reaction will provide a good entry points in a number of markets<\/span><\/strong> <\/a>which will benefit with coming inevitable consequence of this medical shock – Inflation. Money supply will be extended further and when you hear cry about European monetary union collapse: euro, think again. Monetary authorities at home are walking the edge with Budget Deficit<\/span><\/strong><\/a> well above 10% of GDP now – Europe was shaking today with 6% threshold.<\/div>\n

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After today’s shake up we would expect a lot of hysterical cry about coming collapse of economy and then even most prudent lawmakers will look like an Enemy of the Sate should they oppose another Thanks giving in a form of Jobs Program or what ever it will be called. And we are not even trying to be clever here – another option will be a total break of society as we know it. System is insolvent<\/span><\/strong><\/a>. The only way to run it is by multiplying liquidity to keep assets valuation afloat in terms of FIAT currencies.<\/div>\n
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A lot of things could be pointed out as a contribution to markets crash today. We will pick one, distant to Wall Street and not so apparent for the investors in North American markets. A lot of tools from today’s FED arsenal were tested out in UK first, be it bail out of banks or […]<\/p>\n","protected":false},"author":2835,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-278386","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/278386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/2835"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=278386"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/278386\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=278386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=278386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=278386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}