Prepare yourselves: global margin call is coming. I hope that all Juniors are already sold from big banks own books. Cash will be the king this summer. Those who can preserve it will get fire sell valuation where it is matters with real hard assets.
If the March low will not hold wave of brutal selling will bring us into Second Bear Leg.
"Three of Wall Street's biggest banks face handing billion of dollars in collateral to their trading partners after their credit ratings were downgraded a notch on Monday, an unwelcome capital squeeze as they scramble to raise more funds.
Credit rating agency Standard & Poor's downgraded Merrill Lynch, Lehman Brothers (NYSE:LEH) and Morgan Stanley (AMEX:MWD) - three of the credit crunch's most prominent casualties - to A, A and A+ respectively, saying their profit outlooks were weakening and more writedowns were possible.
Because the downgrades make the banks less creditworthy, their trading partners in over-the-counter deals (such as credit default swaps or interest rate swaps) can ask them to post extra collateral as security."
http://us.ft.com/ftgateway/superpage.ft?news_id=fto060320081838383098
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