In order for the politicians to be forced to come in and save the "too big to fail" banks all over again since they didn't reign them in the last time around? It appears it could be coming very soon. They all gambled on the big payoff and unless they do something they will all lose.
"As Citi says, "Until the gravity of the situation is made clear, until the self-reinforcing mechanisms that already seem to be in motion are understood, we don't see how the solutions, the answers, and the certainty that market craves can be brought to the table." Which simply means that things are about to get much, much worse as it will be up to the markets to bring the world to the edge of collapse once again, just so Europe, with the help of the Fed of course, once again is forced to get over the political bickering and prop up risk assets, in yet another iteration of "this time it's different", even though it isn't. Sure enough: "
Our impression is that markets will need to act as the proverbial 'attack dog', forcing the issue on the political agenda. We can't escape the sense that it is probably politically easier to let the markets run loose for the time being to make it apparent that further intervention is needed. But 1000bp on Crossover is much closer than you imagine." In other words, Citi just gave the green light for the bottom to fall from the market
just so Europe's increasingly impotent political elite does something, anything. Look for many more banks to sign off on the same letter."
Once Again, Here Is The Full Playbook | ZeroHedge
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