Overnight we have seen the “noncommunicable US disease” spread to the Eurozone and beyond with the Icelandic central bank rescuing Glitnir Bank, the German stat propping up Hypo Real Estate and a consortium of Benelux CB’s extending the lifeline to Fortis. Meanwhile the EU crows about Fortis crowing the Fortis rescue show their regulatory system works.
On the US homefront Wachovia is the latest target with rumors swirling about Wells Fargo, Citi or Bank Santander playing the white knight in the case. Index futures sharply lower in globex trading and energy futures as very weak. So the beat goes on and on and ….
