BOJ making all kinds of preparations for Greece election. They want to prevent the YEN from going up too much.
It's very interesting to see their chief concern is avoiding a lending problem in Spain and Italy. Spain's housing market is still a couple years away from repair. They have definitely joined the subprime club like the rest of the PIIGS, ex Italy. Who knows when Italy will come to grips with their housing market. Maybe the can get by on their own. They probably have the highest probability of avoiding a bailout for their banks, which is the most sophisticated financial system of any of the PIIGS.
This is the highest Defcon level for the market since fall 2008. The warning levels are probably at level 4 out of 5. The only diffference is that Europe's problems are Europe's problems, and nothing is going to make Spain's housing bubble any better for a couple years. |
