Market Soapbox 12/01/08

MON, a reality check, DJIA -680 on high volume with disasterous internals. All DOWN 8%+.

Bonds up HUGE 10 yr -19bps 2.73%. $ up vs E1.2612 & down vs 93.156y, WTI -10% $49.28, gold -5% $776.8; TED Spread flat 2.18%; 3 mo Libor flat 2.22

SP500 896, gap down 888, crash to close 816. NDX 1186, gap down 1156, crash to close 1091.

FRI: 5 day rally SP500 +96 on horrible news? What in the hell are these ebullient idiots smoking? Get ready as a major reality check is coming soon.

Today, a reality check in spades with the 4th worst point decline in history; SP500 -80.

Construction Spending Oct -1.2% vs -0.3%; Yoy residential -24%; New SFR -41%. ISM Index Nov 36.2 vs 38.9; the lowest in 26 yrs.

No credit for you... Meredith Whitney says the U.S. credit card industry may cut credit lines by over $2 trillion; or 45%.

Chicken Little is that you? The chicken processor Pilgrim's Pride, once a $2.7 billion market cap company, filed for Chapter 11 bankruptcy.

And yes its official, the sky fell: NBER confirmed the US recession began in Dec 07, already making this recession the longest since 1982.

Get out, theres a hole in the bridge... Kalifornia's deficit will swell from $11 to $28 billion in the next 18 months.

The unemployment insurance fund will run out of money in 2009. The Guvenator saying his state is going broke...

ā€œWithout immediate action, our state is heading for fiscal disaster.ā€ declared a fiscal emergency and ordered a special session.

We smell disaster alright, as this dead man walking plumbs new depths; NDX at 976 by Mon. Now thats special.

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

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