EFSF Euphoria Effect soon gone
Markets trading lower. MF Global is imploding, NY Fed suspending MF from conducting business, and there we go, one primary dealer less in the World. The EFSF short squeeze effect is soon gone. The below circles mark the EFSF (non) event we got last week. Many shorts have been totally killed during that massive move we saw. With focus shifting back to Italy where rates now trade well above the 6 % mark (6.1%). Don’t forget Spain, unemployment hit 21.5% last week, but hasn’t received the attention, as the EFSF Euphoria was the Top News.