Market Observations 09/19/08

Resistance: DJIA 11465 (1200DMA); SP500 1265 (1300DMA); NAZ 2300 (1000DMA); NDX 1755 (900DMA)

Support: DJIA 10430 (2750DMA); SP500 1140 (3250DMA); NAZ 2070 (1600DMA); NDX 1620 (1400DMA)

SP500 1206, gap up 1213, rise to 1265, close 1255. NDX 1697, gap up 1760, touch 1773, fall to 1718, close 1745.

FRI: The mother of all bailouts $5 Trillion for FNMA & FHLMC.

MON: BofA bails out Merrill Lynch and Lehman files the mother of all BK's. The 6th largest DJIA decline in history.

TUE: The mother of all insurance bailouts, the Fed taking an 80% interest in AIG with an $85 billion bridge loan.

WEN, the NDX hit a 2yr low & SP500 down 57 pts, hit a 3.5 year low... perhaps a bounce at NDX 1600?

THU: NDX hits 1606, then boing! In came the lemmings... buoyed by Treasury talk of a modernized RTC to buy all the bad debt...

Today, shhhh crude gains $10 in two days, back over $104; gold's largest two day gain in history.

2nd day of big rally on Paulson & Bernanke's bailout... highest NYSE volume ever.

The run on the banks has begun... $89 billion pulled from money market funds on Sept 17th,

$270 billion in money market funds tied up with asset backed commercial paper...

Putnam Investments closed its $12.3 billion institutional Putnam Prime Money Market Fund.

The Fed will sell $50 billion in insurance to investors for money market funds where the NAV "break's the buck".

Bail & print money all you want... Many on the verge of insolvency, talking merger & looking for suckers, er, I mean buyers.

Dead pool 08/23/08: WaMu, Wachovia, Lehman Bros, Citigroup, Merrill Lynch, FHLMC & FNMA.

That's 4 for 7 and taking a number, Morgan Stanley, Wachovia & WaMu, NEXT! We have nationalized housing and now insurance...

AIG, FNMA, FHLMC & bad debt bailouts will add $700 billion to $1 trillion in Treasury debt.

Again, more bonds, lower prices, higher yields, higher interest rates, lower dollar, higher stagflation...

The SEC banned short selling on 799 financial stocks... "to protect the integrity and quality of the securities and restore CON-fidence."

Whats wrong, the poor Wall Street bankers are crying since their ponzi schemes, book cooking and worthlessness has been exposed?

When we needed them, where were the bans on: zero down non owner occ home flipping? undeliverable virtual futures on crude oil? wheat? soybeans? corn for ethanol? etc.

Oh that's right, the brokers and bankers turned their back while collecting their vig, but when its THEIR ass in the sling...

the rules don't apply to this pack of "free" market rapists.

File under WTF... or nice work if you can get it... for his 90 days at the helm of AIG, CEO Robert Willumstad gets a $7 million exit package.

Following up on We The People, off with their heads; and Vampire Shorts...

The Nattering One muses...

When will the criminal prosecution of responsible executives at Countrywide, Merrill Lynch, Lehman Brothers, Bear Stearns, IndyMac, AIG, FNMA & FHLMC, etc. begin?

These criminal rapists cooked their books and misrepresented their stock valuations, as such...

under criminal prosecution the government can seize their salaries, stock option and golden parachute profits.

To help defray the taxpayers costs, the Nattering One demands either their accounts, mansions, private planes and yachts or their bloody heads on a silver platter.

What say ye? There will be no parlay...

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

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