To The Moon

Deutsche bank's share price was under significant pressure yesterday and it was kinda recovered towards end of the day.. Even German chancellor had to comment that Deutsche bank is fine to try to mitigate market fear.

All in all, it won't be easy given that there is significant concern in the Us banking system that might spread to Europe. Europe with it's many years of quantitative easing is not going to face ecb's rate hike that well... Credit Suisse is just the beginning.. There is no easy way to get out of this decade long problem.

Do central banks have a solution if they insist to raise rates rapidly and also withdraw liquidity? I doubt that they have...

Liquidity is not going to be withdrawn so rapidly and that's for sure until the banking system has resolved its internal issue.

So what's left for the financial markets?

Where will smart money go? For value or for liquidity? Hong Kong markets and China markets are seen as the value markets and us market is driven by liquidity now. Growth? Not really with the recession fears and worries!

As always, banks in Us and Europe are not fine in general. Stay safe!

As always, this should not be construed as any investment or trading advice.

$Deutsche Bank AG(DB)$  $Charles Schwab(SCHW)$  $UBS Group AG(UBS)$ $Credit Suisse Group AG(CS)$ $Citigroup(C)$