re: market jittery... look to august 1998
Hi Trade4profit ... I don't see a connection with 1987 and I know you weren't suggesting I did.
You are correct that there is more likely a connection with 1998 but for different reasons IMHO.
In 1998 one of the two super powers economy collapsed completely (Russian FSU) and defaulted on it's debt sending a shockwave throught the international markets.
The hedge fund LTCM was leveraged (US$12.5trillion) so highly that it's collapse could have created a domino effect triggering the collapse of the entire global financial system. Greenspan was forced to bail LTCM out to the tune of US$4.5billion and promise unlimited liquidity to the US banking system to ease the crisis.
In 2005 I see a connection to 1998 in that the one remaining superpower also is itself close to economic collapse.
Cheers ... tight stops.
This is only my view ... read the red stuff.
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