The market has turned into a derivative of what’s happening in Europe…Italy’s 10-year bond yields shot up to 7.5%, a new high since the euro was introduced in 1999. Investors were forced to sell Italian bonds after a European clearing house increased the collateral needed to borrow against that debt. The 7% level was the point where European nations, including Ireland and Portugal, had to seek bailouts as their financing costs ballooned.
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Wall Street Plunges as European Debt Plight Worsens - Reuters (via jonathanmarcus)
Risk management was the right choice. Time to buy VIX…
(via jonathanmarcus)
