The FX swap lines don't recapitalize banks and the fact that European banks need access to the Federal Reserve is an ominous sign and portends the crisis is getting worse. It's kind of like when I hear politicians start talking about needing more stimulus, what I really hear is "the economy is getting worse and we are getting desperate" It's probably why the XLF is drifting lower. JPM is notably weak relative to the other domestic banks and C is up almost up 2%, whatever the hell that means.
Something that is disconcerting to me is that the market knows Bernanke is going to announce something today, most are expecting "Operation Twist" and the market is getting pretty weak. This tells me that the market has already priced in the announcement and doesn't think it will be enough. Mr. Market is saying "day late, dollar short"
With that being said I am relatively perplexed on what to do as Bernanke has instilled a healthy dose of uncertainty into me.
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