At 2:20 EST today, the FT reported that the EFSF would "rapidly recapitalize" 16 major banks. Following this the stock market did a little vertical dance like it did back when that rumor hit that China would bail out Europe, only this time not so strong.
Following this, reuters and some other outlets (which did not report the initial announcement) responded by issuing an alert that 16 major banks in europe may be failing stress tests.
Others commented that the announcement is not bullish. Gold is looking to possibly dip below $1700, into the upper $1600s before we see it attack $2000 again. Silver is testing $36 and not looking bullish either.
I still hold to my previous prediction (I posted that on SA I think, maybe not here) that we're gonna see a Euro-Lehman over the weekend. It could come from anywhere, at that. Austria, France, Germany, who knows. Apparently Morgan Stanley is also a time bomb, having 60% more EU exposure than they do capital. Needless to say at least a few big names may disappear overnight.
I'm pissed about MS. I'm going to have to dump my DRR tomorrow. Sick of being another unsecured creditor of MS.