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...

Without immediate action, our state is heading for fiscal disaster.” 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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