A black swan monday in the making in the sea of red

Equity futures worldwide point to a sea of red in the morning today. European and Japanese equities are 2.5 years low.

The French banks are about to be downgraded any minute now. G7 emergency meeting had no soothing words for the market.

Greece is insolvent, and a default now is just a formality. And the market just does not know how to deal with it. The international banks will need another rescue because they all have exposure in some form or other to Greece. But this time around the contagion maybe so widespread that the rescue money is just now available.

So waiting and watching the slow train wreck from Greece, while the currency of US, with it own internal discords and record deficits, is perceived as a “safe haven” Go figure.