US and European stock markets (and European sovereign bond markets) have been sliding since early in the European morning overnight. The blame for the weakness appears to be coming from a double-whammy in Germany. First the German government resolved to push for the financial transaction tax (despite banks rejection of the proposal – well they would wouldn’t they) and then later in the day when Germany’s emerging coalition rejected the last-best-hope for shared sacrifice (or using more of Germany’s balance sheet) – The Debt-Redemption Fund – leaving more pressure back on Draghi to save the day. Anxiety in the US is clear with VIX (and credit spreads) rising as hedgers are active – and of course, markets are broken with NASDAQ options prices ‘crossed’ acording to some sources.
Europe’s markets are falling rapidly…
And the US is unhappy…
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via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/oqnRtxinDL0/story01.htm Tyler Durden