Obama economic adviser Paul Volcker is on the Hill, downplaying the odds of bank nationalization, saying “I don’t think that’s at issue”. Volcker also advocates isolating toxic assets but does not say whether they would be on or off the bank’s balance sheets, i.e. in the government’s hands.
Stocks are firm and USD/JPY is marchinh higher along with it. It absorbed offers at 98.20/25 and is zeroing in on 98.50 where another crop of Japanese offers are seen. A break targets 98.90, the 50% retracement from last summer’s high at 110.70.
