There’s a lot to like about what you’ll read at the end of this post from Bloomberg’s Cameron Crise.

You’ll note that everything he says has been variously discussed in these pages exhaustively over the past several weeks. There’s the “gridlock” problem, there’s a reminder about how quickly this market has learned to BTFD on potentially destabilizing geopolitical outcomes, there’s a nod to the hedging that’s readily apparent in FX and equities, there’s a mention of the fact that FX is going to be the only means by which traders can express a knee-jerk reaction, and there’s the contention that no one should panic.

All of those points have found expression in dedicated posts here at HR – some of which this very morning.

One thing to note as you read Crise’s commentary is that earlier today, the ECB suggested that in the event something goes horribly awry, the governing council is ready to step in with the infamous ELA crutch. Here’s Reuters:

The European Central Bank could provide emergency cash to French banks if needed after the first round of France’s presidential election on Sunday, but it doesn’t expect such a move will be necessary, ECB policymaker Ewald Nowotny said on Saturday.

“If there should be problems for specific French banks liquidity-wise, then the ECB has the … ELA, Emergency Liquidity Assistance, but we don’t expect of course any special movements,” Nowotny, who is Austria’s central bank governor, told reporters at the IMF and World Bank spring meetings.

Do note that the very fact Nowotny felt the need to say that underscores the contention that this is a riskier scenario than a lot of people seem to think.

Via Bloomberg