On Tuesday, SEC has approved a UK company LCH.Clearnet Ltd to operate as a central clearing house for CDS. This is a milestone in containing the CDS monster, and provide transparency. This was long proposed by George Soros, he mentioned it during this year Davos economic meeting.
Hence the rougue Hedge Funds which terminated all the Investment Banks, bankrupted or near bankrupted Lehman Brothers, AIG and Citigroup now have lesser weapons on hand.
We have yet to see GM fall, as well as the Commercial Real Estate market.
With the G20 meeting in London in early April, GM viability dateline on 31 March. Obama inauguration on 20 January, expect market volatility to persist which is good for swing trading.
Over the Xmas period, some positive news have come out,
(A) Japan announcing a near 1 Trillion USD fiscal package,
(B) Biden said that the package is near done, and ready to be given to the Congress.
(C) GMAC now a bankholding company, eligible for FED loans
(D) SEC CDS clearing house in operation
(E) A better than expected US consumer spending
We are starting to see some lights, let see if there would be a January rally afterall.
You are most welcome to exchange views and discuss.
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