BREXIT: The Unanimous Winner Of Six-Sigma Black Swan is GOLD…”Many “counterparties” were outright blown up today.”
SilverDoctors.com
June 24, 2016
Brexit is being called a six sigma “Black Swan”. The world will wake up Monday morning to all sorts of margin calls.
You must understand, the “carry trade” is held on very thin margin.
Many “counterparties” were outright blown up today.
The unanimous winner in ALL currencies is gold…
Submitted by Bill Holter, jsmineset.com:
BREXIT! I have to admit, I did not believe it would happen. Rather, I did not believe it would be “allowed” to happen. In retrospect I believe the elites will look back and wish they had “Diebold” doing the vote count. This vote has so many various ramifications, it is hard to wrap your head around what it means but let’s take a look at what stands out most.
First and foremost, the “people stood up and spoke”. The vote to exit is without a doubt the largest protest vote the world has seen in many years. It is important to note that the Brexit vote is symptomatic of what is happening worldwide. I would also say it is very similar to the Trump phenomenon here in the States, people are angry. (I would also say the results are very encouraging to the Trump camp). Next, we must wonder “who” is next? Italy, Spain, France? Then, the next exit is the curtain for the EU experiment as a whole. It is only a matter of time before the next referendum (Italy in October), Brexit is only the beginning of an end where individual countries will prefer to steer their own destinies. “Globalization” has been dealt a huge blow!
It should be noted, the vote yesterday was only a referendum and does not guarantee the Parliament will petition to leave the Eurozone. It will be interesting to see how the Brits react if Parliament defies their wishes. All of this will take “time” to occur, but time is not something I believe is available and will most likely be cut short by the markets short circuiting.
As for markets, Brexit is being called a six sigma “Black Swan”. I had planned to write today that the entire system itself is the fabled Black Swan, I think we will soon see if this thought is correct. The world will wake up Monday morning to all sorts of margin calls. You must understand, the “carry trade” is held on very thin margin. No matter what market you are looking at, they all moved several percentage points versus 1% or much less used to carry positions. My point is this, many “counterparties” were outright blown up today and are dead entities unable to perform. Yes I am sure the Fed, ECB and BOJ will provide liquidity but that will not erase the losses, it will only postpone the pronouncement of death.
The Rest…HERE
