Books will be written about these days for the rest of time. And a special chapter will be dedicated to the unwinding of the biggest bubble of all - the Yen Carry Trade.
And seriously HP'ers, who amongst us would have predicted that the US Dollar would emerge from this carnage even more solid than gold, or Euros, or oil?
Cats are sleeping with dogs now. Up is down. All trust is gone. And countries from Iceland to Hungary, from Romania to the UK, are seeing declines in their currencies that may soon lead to significant social unrest.
Get some popcorn, get some ammo, horde those dollars and yen (for now, until they blow up?), and watch the world implode as panicked frogs jump from lillypad to lillypad in a desperate attempt to stay afloat.
Europe on the brink of currency crisis meltdown
The financial crisis spreading like wildfire across the former Soviet bloc threatens to set off a second and more dangerous banking crisis in Western Europe, tipping the whole Continent into a fully-fledged economic slump.
Currency pegs are being tested to destruction on the fringes of Europe’s monetary union in a traumatic upheaval that recalls the collapse of the Exchange Rate Mechanism in 1992.
“This is the biggest currency crisis the world has ever seen,” said Neil Mellor, a strategist at Bank of New York Mellon.
Broadly speaking, the US and Japan sat out the emerging market credit boom. The lending spree has been a European play – often using dollar balance sheets, adding another ugly twist as global “deleveraging” causes the dollar to rocket. Nowhere has this been more extreme than in the ex-Soviet bloc.“The system is paralysed, and it is starting to look like Black Wednesday in 1992. I’m afraid this is going to have a very deflationary effect on the economy of Western Europe. It is almost guaranteed that euroland money supply is about to implode,” he said.