by Peter Cooper, Arabian Money:
Suddenly the calm is over and the storm is upon us, at least in the North West USA if not yet in financial markets. That said the trouble brewing in those markets looks about to turn into a once-in-100-year storm too.
US political instability is a frightening prospect but that looms large with a very close race for the White House and uncertainty over the composition of the legislature after the elections on November 6th. The automatic austerity of the US ‘fiscal cliff’ on January 1st is far from being automatically avoided and markets loathe this sort of uncertainty.