Thursday, March 26, 2015

Another Middle East War Breaks Out: Saudis Begin Bombing Yemen, US Military Taking Action

The mainstream press may call it a black swan, but some of us predicted the House of Saud succumbing to a difficult transition with the passing of the King.  If Saudi Arabia collapses, goodbye cheap oil, accompanied by many geopolitical fissures in the middle east.

In any case, paper assets are collapsing while hard assets are climbing as this goes to print in overnight trading.  Time for the Fed and Plunge Protection Team to shift into overdrive.

The problem, of course, is market manipulation (or "interventionism") works--until it stops working.  Rigged markets never end well.

Update:  Sure enough, the PPT steps in this morning to save the day.  With the help of the ECB.

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