Panic has gripped world financial market and being one of the market participant (i'm a banker) i am not spared. Well, there are limited business opportunities that we are able to work on, mainly USD transaction. Sky rocketing credit spreads, lack of liquidity in the money market and what apperas to be a run in the global financial system is hitting the global financial sector - a potent cocktail for economic catastrophe.
The delusion that the US economic contraction would be a short and shallow V shaped, 6 months recession has been replaced by a long protracted U shaped recession and probability of L shaped recession cannot be ruled out.
Things are not looking good and this financial crisis will test the durability of globalisation and capitalism in general! I'm still lucky to have a job.
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