From the FT
http://ftalphaville.ft.com/:
ML’s advice? Watch for liquidating positions, central bank reaction (especially non-US) and stop worrying about inflation.
While those suggestions won’t necessarily help us interpret some very strange markets, they certainly serve as a good reminder to watch for the not-so-obvious consequences of financial upheaval.
A good example is the effect of a potential AIG firesale of ILFC, the world’s biggest aircraft leasor. Something like that has the potential to affect aircraft prices and feed into a company like Ryanair’s balance sheet - a significant bit of which is predicated on jet values.
The balance sheet strength of an Irish airline is not the first thing that jumps into your mind when considering an AIG collapse, but there you go. Those are the sort of ripple effects one might (attempt to) examine in the current climate, if you fancy giving it a go at all.