As we know, a number of French cities have been the scene of protest recently. The protesters, distinguished by their yellow vests, have been increasingly creative in their tactics and now seem to have a new plan.
The idea is that if enough people withdraw all their money from the bank at the same time they might be able to force a liquidity crunch requiring government intervention, possibly crashing the Euro, and send a unified message to authorities.
While I’m no fan of the fractional reserve banking system, I’m not sure that trying to topple economy is a very productive course of action.
In any case, there probably isn’t anything to worry about here as it would take several millionaires getting onboard to have the desired effect and that just doesn’t seem very likely.
eToro, Senior Market Analyst
Shutdown: Day 20
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Stocks in the USA struggled to close in the green yesterday and by the end of the Asian session this morning it seems pretty clear that the monster rally we’ve been seeing in the markets this year is losing steam. Overall, the markets do seem to be at an inflection point right now.
Some analysts are citing the fact that the US-China talks ended without resolution as a contributing factor, but I’m not so sure. What’s really strange to me is the market almost completely ignoring recent signals from the Fed that it is willing to be more supportive.