Market Soapbox 09/29/08
MON, largest single day drop in history, DJIA -777 on high volume with ugly internals. All DOWN BIG.
Bonds up BIG -27bps 3.58%. $ up big vs 1.4386€ & down big vs 103.81y, WTI crushed -12% $95.56, gold +2.5% $912.6...
TED Spread explodes +35bps 3.25% the highest since 1984.
SP500 1209, off a cliff to close 1106. NDX 1672, gap down 1638, a flying leap to close 1496, a 10.5% loss in one day.
FRI: the largest bank failure in US history; FDIC seized WaMu.
The economy has been contracting 3 straight quarters and the true ugliness has just begun.
Circuit City posted a Q2 loss of as revenue fell 9.6% yoy. Overnight, Nikkei -1.3%; Hang Seng -4.3%, FTSE -5%, CAC -5%; DAX -4.2%.
Today, congress rejects the unnecessary bailout dubbed the "emergency economic stabilization act" 228-205, the street panics.
Paulson scrambles to save his banking brethren. Happy Hank to Congress: Trust me. Congress to Happy Hank: Fool us twice, shame on us.
Fresh from our dead pool... Fortis on the verge of collapse is Nationalised with a $16 billion bailout.
Wachovia collapses, Citigroup buys the remains for $2 billion or $1 per share.
Citi cut it divident in half to raise $10 billion to stay alive. Citi must absorb $42 billion in Wachovia losses which they can't afford...
The FDIC will absorb anything above $42 billion... Guess who is next?
Many regional banks such as Soveriegn, National City; 5/3rd and many others, the FDIC will be insolvent within 60 days.
The unwind into chaos erased $1.2 Trillion today, VIX hit a record 46.72, 30 day t bill at 0.05%.
End of month & quarter, fed repo injects $630 billion to no avail, 55 to 1 decliners; the market is frozen and the worst is yet to come, we pity the fools.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
Bonds up BIG -27bps 3.58%. $ up big vs 1.4386€ & down big vs 103.81y, WTI crushed -12% $95.56, gold +2.5% $912.6...
TED Spread explodes +35bps 3.25% the highest since 1984.
SP500 1209, off a cliff to close 1106. NDX 1672, gap down 1638, a flying leap to close 1496, a 10.5% loss in one day.
FRI: the largest bank failure in US history; FDIC seized WaMu.
The economy has been contracting 3 straight quarters and the true ugliness has just begun.
Circuit City posted a Q2 loss of as revenue fell 9.6% yoy. Overnight, Nikkei -1.3%; Hang Seng -4.3%, FTSE -5%, CAC -5%; DAX -4.2%.
Today, congress rejects the unnecessary bailout dubbed the "emergency economic stabilization act" 228-205, the street panics.
Paulson scrambles to save his banking brethren. Happy Hank to Congress: Trust me. Congress to Happy Hank: Fool us twice, shame on us.
Fresh from our dead pool... Fortis on the verge of collapse is Nationalised with a $16 billion bailout.
Wachovia collapses, Citigroup buys the remains for $2 billion or $1 per share.
Citi cut it divident in half to raise $10 billion to stay alive. Citi must absorb $42 billion in Wachovia losses which they can't afford...
The FDIC will absorb anything above $42 billion... Guess who is next?
Many regional banks such as Soveriegn, National City; 5/3rd and many others, the FDIC will be insolvent within 60 days.
The unwind into chaos erased $1.2 Trillion today, VIX hit a record 46.72, 30 day t bill at 0.05%.
End of month & quarter, fed repo injects $630 billion to no avail, 55 to 1 decliners; the market is frozen and the worst is yet to come, we pity the fools.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
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