Let us take a break from the daily up down dance of the stock markets. We are so glued to the five minute charts that we are losing the sight of the bigger picture.
I have been writing for a while that I am not expecting the bottom to fall off the market anytime soon. Not in 2011, not even in 2012. Why such optimism in the face of such bad environment? When it is not sure if Europe and Euro will exist at all in its current form? When recession is almost certain in Europe and China is preparing to cushion its landing. The answer can be found in the coordinated action of the seven CBs (Central Bank) last week. Like in Japan, the CBs of the western world will keep their TBTF Banks alive with continuous injection of liquidity. It does not matter that these banks are all Zombie banks, dead men walking.