Doug Noland: Bubbles, Dams, War and Cracks
It was a close call, but the largest ever Q1 options/derivatives expiration went off without an accident. That said, it was anything but pretty. Friday saw a troubling market dynamic in full force. No place to hide. No safe havens. Key “insurance” (Credit default swaps) markets lurching toward dislocation. Global bonds under further heavy selling pressure. Treasuries, MBS, agencies, corporates, and muni bonds all hammered. Stocks clobbered. Precious metals battered. Spreads blowing out. CDS prices spiking higher. Emerging markets bludgeoned. Currency instability taking hold.
