Money market rates tumbled after the European Central Bank injected an unprecedented $500 billion into the banking system as part of a global effort to ease gridlock in the credit market.You ca
You can tell that there's a genuine crisis on our hands when central banks continue to have to pour money into the banking system. When this continually happens, you know something's not right.
So the financial markets will continue to be shaky with more surprises along the way. As the year comes to an end, the big interbanks in currencies, market makers in stocks and commodities will start to close out their books for the year and become less active. As they do, spreads tend to widen and volumes continue to taper off a bit. This causes its own volatility (aside from the crisis).
So keep all of this in mind if you trade during these last number of days in the year.
Sean Hyman
www.sovereignsociety.com
www.money-trader.com
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