This is the way that it’s going to work over the next few weeks:
The markets, in spite of the fact that they’re going up and down like a whore’s drawers, should really be DOWN (like a whore’s drawers).
However, BECAUSE the markets are way too high and will once again start to tumble, (mostly because of the €500 billion Spain needs and the Eurozone does not have), large amounts of “empty-calorie” cash will be generated by Central Bankers. (Take a bow Ben, Mario, Mervyn etc.)
They will call it QUANTITATIVE EASING – which is a nonsense phrase invented by bankers. However, they may call it something else on this occasion.
A large proportion of that cash will be used by the banks to buy stocks and increase commodity prices by investing in them, although the myth of “Rebuilding our Balance Sheets” and “Creating a Firewall” may also be deployed in order to excuse the continued silliness.
THAT will once again make everyone believe that all is OK because this “faux-euphoria” will make the markets rise, in spite of the fact that whole economies are collapsing.
However, the banking industry will continue to book huge profits which after all, is the real “name of the game”.
Que les jeux commencent!