Market Soapbox 09/22/08

MON, back to reality, DJIA -373 on average volume with devastating internals. ALL DOWN BIG cept XAU.

Bonds down 10 yr +4bps 3.84%. $ crushed vs 1.4792€ & vs 105.37y, WTI +5% $109.1, gold +4% $907.3; TED Spread down HUGE -34bps 1.94%

SP500 1255, plunge to 1205, close 1207. NDX 1745, plunge to close 1665.

FRI: 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...

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

More bonds, lower price, higher yield, higher rates, lower dollar, higher stagflation.


Today, the dollar index porked 3%; in a huge short covering squeeze, oil for Oct +15%; Nov +6%...

intraday gaining $25 surging to $120, the largest single day gain on record.

In dire need of cash...

in the form of deposits and access to the Fed discount window, Goldman Sachs, Morgan Stanley convert to bank holding companies.

GM issuer default rating downgraded to CCC from B- by Fitch citing diminished liquidity and lack of access to capital.

At their current burn rate, they can't survive 2nd half of 2009.

THU 11th: WaMu sees a Q3 $4.5 billion loan loss provision, Moody's cuts WaMu to junk level...

The largest S&L in the US needs $10 billion yesterday, and can find no takers.


Keep your eyes peeled to the sky, it could be a name brand... can you say WAMU? I can.

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

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