More liquidity/default issues at New Century ... and a NEW round of global market turmoil
As for the broader market impact, the NEW news appears to be igniting another global you-know-what storm. Stock futures have reversed and started falling. The Japanese yen has started to rally. Bond prices have started to rise. We first saw these "reduce risk" trades emerge in late February. That was followed by an "Opposite Day" environment, one I said last Thursday that I was skeptical of. Now, traders are back to cutting risk. Talk about a roller coaster ride!