Hey, Mish - so, I have a thought about what is happening now between Merkel and Italy: it reminds me of the Lehman crisis when Paulson et al. decided that they could not risk another bailout of a profligate bank (they rescued Bear Sterns and in so doing paid a steep political price. Accusations of ransom and blackmail came up then, too.) If Germany balks at bailing out Italian bonds and banks now, I wonder, Does this set the house on fire the way the collapse of Lehman did? Doc

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Mike Mish Shedlock
Mike Mish Shedlock


Hi Doc - I do not think we are in for a Lehman-style collapse. But I could be wrong. I wrote about a liquidity crisis yesterday, and that is increasingly likely. But the time is unknown. I suspect any such crisis will occur later rather than sooner. If so stock will already be quietly down 15% or so, before the event. We are all guessing. Sorry for the delay in responding.

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