23 October 2011

The Market is fixated with 23 October. People think that the European leaders are going to come up with a bazooka solution to the European crisis...
The Guardian this morning announced the prospects of a 2trillion euros EFSF bailout fund which no doubt will spur the market to continue it's wishful thinking, but why would investors want to plough their money in when European banks are trying to reduce their assets to raise capital. Think 1 trillion euros...or more... What they will end up selling will be the liquid assets and end up being stuck with a bigger proportion of the same assets that got them into trouble in the first place...