This will be another AIG type disaster. Our banks will ‘need’ help because European ones owe them. The open market will close up again, because no one trust another for good reason. Enter Uncle Ben to the rescue.
Dimon is telegraphing to Bernanke that JPM needs a BILLION DOLLARS more in liquidity (free taxpayer money) if they get down-graded by the ratings agencies because of this.
FIRE UP THE PRINTING PRESSES, here comes QE3!
A backdoor QE3? OXI!