Posted by rahrens_1 on November 01st 2011 at 08:45 am
Warning, extreme cynicism ahead…
Well it would appear that Mr. Papandreou has gone decided to go off the reservation and go rouge. And what is gold doing, down $29/oz of course, isn’t that what’s supposed to happen when risk increases? I could have swore someone told me gold was a hedge against political uncertainty, hummmm, I guess I must have heard it wrong… One has to wonder if Bernanke and Tim woke up asking their people, “so how much did we manage to take down gold overnight?”. It will be too much for those in Asia and smart people in Germany to resist picking up some more cheap gold.
So I guess the only obvious question left is, “is this considered a voluntary default, cause then the CDS’s won’t trip right?