Secrets: Europe Is Even Worse Than The Public Knows
The markets are trading on shaky ground today. The Lehman Brothers collapse anniversary is not without some fireworks. The big news of the day came from ECB. They decided to launch a three-month loans program in coordination with the U.S. Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank. This initially caused a solid market rally but may be short lived.
The markets are stuck, trying to determine whether or not this was a precautionary measure or possibly a signal telling the world things were at the collapsing point. The more we see the workings of Europe, the more a collapse seems possible. This makes the action today by the ECB more like a panic to an impending collapse.
As of now investors seem to be willing to buy the market. This most likely has less to do with the ECB news and more to do with next weeks Federal Reserve policy meeting. The markets continue to hope for QE3. Ultimately, this ECB news was not good and probably spells more trouble for the markets down the line. The big question is, when will it hit?