We had a major confirmation today. All the trades based on predictability are broken. We saw that in the the currency markets today. The Yen Euro carry trade was broken. In terms of derivatives they are geometrically leveraged with little collateral security. If we trace back what happened with GS and AIG that was the first derivatives bailout. With sovereign risk we are facing the second wave of derivative exposure. We will either see default or cooperation. If cooperation comes in a re-valuation of the dollar it will not be as most people expect. The trend is YEN Euro towards parity, then a reset of obligations leaving China as bag-holder along with oil suppliers.

Crisis Preparation and Planning requires an understanding of the current crisis status. If you would like to understand how this crisis affects you, then the crisis template will help you to maneuver through the coming storm. It is a simple but powerful crisis template, applicable to many situations, not only the financial crisis. The objective is to deliver a better understanding of the two phases in crisis situations and to take precautions and prepare oneself just at the right moment….

Most likely the trust in a market recovery is going to disappear. The Obama administration has failed to deliver on its promises and markets have been under extreme stress. It is time to prepare for times in which banks become disfunctional