Wednesday, August 24, 2011

Jackson Hole is not about Bernanke

I have a feeling something big is going to be brewed in Jackson Hole. And it is not QE3. Bernanke, Trichet, and their Co's are there to cook up a deal. Even though this is an annual event, scheduled well in advance, and not that they could not do it over the conference call. But the markets have deteriorated tremendously in the last month. I see that Lagarde is going to give a speech as well (last moment addition). Coincidence? I am in a bear camp for the next few weeks to a month, but as the markets progress towards the lows again, the new facility/deal/whatever you wanna call it will be there waiting. They start in WY and tell nobody about it. They wait for politicians to agree, they also wait for same politicians to try to calm the markets down first. But politicians will fail I bet, and that is when ECB/FED/IMF will act. And of course, I am talking about the European bank bailout, a la TARP/TALF. Meanwhile put your helmets back on until everyone returns from vacations in September.

No comments:

Post a Comment