There's no direct link, but I do think it's a good proxy for what does matter: confidence in the US financial system. I think uncertainty about Credit Default Swaps are still depressing the market. If the US stops supporting AIG, then the whole financial system collapses from what I read. The CDS market is estimated at 60-70 trillion. So a failure would be 50 times worse than the sub-prime crisis.
That's why no one wants to own a bank. I'm not sure what exposure MQG has, but even if it has zero exposure, the price could easily fall $10 if that kind of collapse happened. Where I differ with the doomsayers, is in assessing how likely it is to happen. I personally think it's below a 1% chance, whereas they all talk as if they're clairvoyant and know the future with 100% certainty.
Z
MQG Price at posting:
$17.60 Sentiment: ST Buy Disclosure: Held
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