Market Soapbox 07/14/08

MON, downward ho, DJIA -45 on lower volume with ugly internals. All DOWN cept XAU.

Bonds up BIG 10 yr yield -10bps 3.86, $ up vs 1.5904€ & down vs 106.176y, WTI up $145.09, gold +1% $973.7, TED spread up BIG +11bps 1.33%.

SP500 open 1240, rise 1253, dive to new low 1225, close 1228. NDX 1810, gap up to open 1834, touch 1837, dive to 1792, close 1798.

Two WEN ago: Two words, limitless downside. Two more words, get out.

Two THU ago: ...we sense things are just starting to get grim.

THU: MBIA & Ambac AAA downgrade still playing out; now GSE death watch, next act GM or PMI insurer BK?

FRI: Looks like a Fannie implosion could take this dead man walking to new depths. And did it ever with the largest bank stock decline since 1989.

Feeble Fannie bailout; IndyMac FDIC seizure; WaMu -29% on $26 billion loss?; National City -26% suffering a depositor run.

We have two more words for you: Get ready... Get ready for our new trifecta in the near term... a PMI insurer, Lehman Brothers & WaMu insolvencies.

...multiple small bank deposit runs and don't even think long term... FDIC, FNMA, PBGC insolvencies and FED tapping Treasury for cash and dollar crash to follow.

Bare witness to history in the making as the financial world gets turned upside down and shaken for every last penny in the public's pockets.

Often wrong, but never in doubt, this is the Nattering Naybob and you're not.

Comments