[Robert DeLong]

Looks fishy to me. I trust the Wall Street Journal about as much as I trust Democrat politicians.

[sergeantdave]

It’s not the Wall Street Journal, and I share your disbelief toward that newspaper.

[Publius]

It's not fishy. Martin Armstrong identified it last fall and named it the "Repo Crisis." A decade plus of Zero Interest Rate Policy (ZIRP) has destroyed so much capital that the final crisis of socialism is upon the world. Europe is feeling it first, and European banks no longer trust each other.

This is why the US stock market is doing well even though the basic economy isn't.

European sovereign debt is in serious trouble, which is why European governments are destroying the last vestiges of financial privacy and are attempting to get rid of physical cash in their hunt for taxes to fill the black hole that dying socialism is leaving behind. Money is fleeing Europe for America where the Repo Crisis is just beginning. The money is going into the stock market because it is a private equity pool, not a public debt pool like the US T-bill. There is a fear that we're next.