By John Galt
August 5, 2011
The efforts by the JCB and SNB appear to have started to flail wildly and the lack of follow through by the ECB to save the markets was noticed around the world yesterday prompting and accelerating the currency and solvency awareness crisis worldwide.
Watch the chart of the EUR/CHF after 7:30 a.m. ET and if it turns up sharply odds are the Fed, ECB, and SNB decided on a coordinated intervention on behalf of the European banking system by buying their bonds or offering to hold them as collateral for 30 to 90 day liquidity infusions. Call it a hunch as the Fed already has the employment report and if it is a disaster, the will lose control of the markets rapidly and will need to react even more drastically than they would otherwise need to if they take action today.