The answer to the problem of excessive leverage is obviously more leverage. Non-stop talk of the EFSF being used as the spring-board to shore-up both banks and dodgy European government bonds is giving the US equity markets a solid lift this afternoon, Banks shares are up 2.6% with all stocks in the S&P sub-sector up on the day.
EUR/USD seems very comfortable in a range below 1.3600 and above 1.3350…Rinse and repeat.
