My suspicion is that the Wall Street wiseguys will continue to run their bluffs and play with the world markets up until the weekend over which they will fold their cards and collapse, as this did with the bankruptcy of Lehman Brothers and the beginning of the great financial crisis. The great currency crisis will be no different.
And no one will understand how it could have happened. Congress will engage in well staged histrionics, and the regulators and economists will hide in their offices.
The three big US banks, Wells, BoA, and Citi, which have just been downgraded by Moodys, may be cut down in size.
But saving JPM, the Fed's house bank, will be put forward as a national priority. And as for Goldman, well, they know where more bodies are buried than a cemetary caretaker.
Moody's also warned on the credit rating of the US today, and the metals were hit by brutal bear raids, even while the dollar slumped. Draw whatever conclusions which you may, but it looked like an exercise in perception management from here.
