I stare, quite aghast, at at blinking screen of the EUR/USD intraday graph which is defying gravity as Spanish spreads are widening, European stocks are dropping and USD/JPY is crashing.
The pretty boys of fx have lost the plot. They are only fixated on one thing now. Taking out the stops before they go home for the day.
It is just the same as SGD corporate bonds today. The book size for the new PCRT (Perennial China Retail Trust) was in excess of SGD 750 million, when the company’s market capitalisation is only SGD 540 million comprising of far flung assets in 2nd and 3rd tier Chinese cities.
It is bordering on the bizarre of Twilight Zone and ironic that its happening in this Chinese Hungry Ghost month.
Besides the obvious message all this is sending that there is no karma in banking, another well worn lesson that never fails to impress me is that there is no limit to human greed.
Finance Ministers are allegedly commiting suicide in Japan.
Welcome to the Party !!