Early Asia Trading

The Eurozone announced a delay in “settling” the Greece bailout. Not good news for global markets that are desperate for something to end uncertainty rather than create more. Korea has advised its banks to prepare their currency exposures for another global credit crunch. Overnight interbank lending rates in Shanghai have risen by 3 percentage points – not basis points – percentage points.

Whatever the real reasons for this — and I’m pretty sure the wizards of the universe will never say what they are — it looks like another financial panic is about to begin. If banks won’t lend to each other wholesale, then all other lending will cease shortly and the “risk off” trade is about to become a panic to liquidity.

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