SERIOUS ABOUT SUPPORT

Central bankers have shown that they are now serious about giving support to financial markets. The flood of money was important but the action in the UK to suspend short sales is even more important. Short sellers around the world have been put on notice.

It is widely known that the mark to market rules have resulted in a huge but temporary depletion of capital. The up turn will be violent because the equity in these leveraged securities will soar.


Russia has announced that it will gradually suspend oil shipments from all but its own ports. This is a big nothing but the price of oil jumped $5. The threat can cause harm in the short run but it is the same as a producer of cars boycotting the world. If GM decides to never sell another car, the world will not go car less.

12 days until the oil drilling moratorium is toast!