Elsewhere, equity markets are soaring – from +3% to +5% or more – because of short-covering in the banks. Yes, other stocks are positive on the session too, but not nearly to the same extent as international banks that are holding Fannie and Freddie toilet paper.

Here’s why markets are booming, temporarily at least, early this morning:

Opening in UK—

+12.0% Royal Bank of Scotland
+11.9% Barclay’s Bank
+13.0% HBOS Bank
+10.1% Lloyds Bank

Opening in France—

+8.9% BNP Bank
+10.0% Credit Agricole Bank

Opening in Germany—

+8.4% Deutsche Bank

Opening in Australia—

+8.8% ANZ Bank

Meanwhile, those markets are up, but not nearly as much.

I recommend you read what is being said by the China authorities today, where the equity market (Shanghai Composite) is down -2.7% to 2143.

Traders are now walking away from safe-haven bonds and yields are rising. Check out this story from Japan.

Here’s the story you ought to be thinking about when trying to catch the top of the pop for the next short in the Financials.

Here is another; this one is about Goldman Sachs. Do you recall how I wrote recently that trading in GS does not seem right to me. Something is amiss. I even commented that maybe hearing that Paulson might be returning soon has ruffled a few executive feathers.

Today, like Friday afternoon, is short-covering day. The only difference is that the Interventionists have had all weekend to crank out media kits to financial editors, and now you are about to read a trillion words regurgitated from the Paulson Playbook.

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Links & Charts

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International Economics Review

US Economic Calendar.

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International Equity Markets Review

Europe

Here is the latest session data for the bourses of Europe.

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Here is the latest session data for the London stock exchange FTSE.

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Here is the latest session data for the German DAX.

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Here is the latest session data for the French CAC 40.

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Here is the latest session data for the Milan Italy stock exchange MIBTEL.

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Here is the latest session data for the Swiss market index.

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Asia-Pacific

Here is the latest session data for the Asia-Pacific stock exchanges.

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Here is the latest chart for the Japanese Nikkei 225 index.

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Here is the latest chart for the Singapore index .

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Here is the latest chart for the Shanghai Composite index .

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Here is the latest chart for the Hong Kong Hang Seng index .

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Here is the latest chart for the India BSE 30 index .

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Here is the latest chart for the Australian All Ordinaries index .

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US Equity Markets Review

DJIA (interactive) chart

NASDAQ Composite (interactive) chart

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Oil Review

Here is the e-miNY Aug-08 Crude Oil chart.

Interactive Chart of Daily Crude Oil:

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Gold & Precious Metals Review

Spot gold chart for the week

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Spot silver chart for the week

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Forex Review

Here is the chart of the week's trading in the $USD.

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