Still “gravity” persists … it’s called survival
Despite all the postive factors, the daily news flow keeps markets down …
Today, the news of the day was not the successful VISA IPO, but the rumours around HBOS, the UK lender as well as news about Thornburg Mortgage, which seemingly will file for bankruptcy and the talk about different hedge funds having huge liquidity problems.
Thornburg’s problem … they need to raise 948 mln$ within 7 business days to secure a fresh 5.8bln$ financing.
Thornburg is a “jumbo” loan provider … anotherone bites the dust???
Anybody who does not understand the problems of tthe creditmarket should just imagine, he would leverage his holdings in the markets around 30x …
IT IS SO EASY TO GO BELLY UP … IF YOU ARE STUPID AND RECKLESS ENOUGH 
The problems of the markets are accelerated by the HUGE March EXPIRATION … triple witching is coming up …
and tomorrow we have expiration in the i traxx indices.
Next thing is the end of the business year in Japan … Hello carry trade …
and the end of Q1 for the western hemisphere … A lot of selling could be around the corner …
Look now on the sell off in the commodities … people are running for CASH.
CASH IS KING!!!
Risk aversion rules … Meltdown still possible … despite some favorable factors (I pointed them out yesterday)
So, whatever you do at the moment … tradingwise …
SURVIVAL is key, not trying to be a hero and catch bottoms
Tags: carry trades, expiration, HBOS, Thornburg, VISA
