Its spread beyond the banking system. This market is going down hard over the next few months no matter what the Congress does. We have the qtrly hedge fund redemption's coming and earning season which while some companies will make their numbers most will say conditions are getting worst and provide lower guidance. Its all bullshit anyway. We don't need the bill and I think its only 50/50 that the house will pass it.
This is not about individual consumer yet, soon there won't be any bank to borrow from. Following companies are bankrupt: BSC, LEH, WM IMB, WB, CFC? Couldn't they just borrow? More bankrupt banks = less people have JOB.
This was a classic buy the false rumor, sell the fact, buy the second rumor, sell the second fact old wall-street-bailout-by-the-federal-government-during-a-credit-crisis move. Happens all the time, should have seen it.
Ha! I wouldn't be surrpised to see a bear market rally soon--especially after today's close and the S&P 500 bottoming out at a round number. If today closed up strong (like Tuesday), I think there would be more serious declines next week. Before I get screamed at by the hard-core permabears, I'm only talking about an oversold rally. Even the Great Depression had its share of those.
yup, late friday push to new lows has often meant a bit of a rally on sunday and monday. well thats what has happened most often over the last year... im long ES at close. if fed cut sunday night im dumping it on open. if not im dumping at us open on monday if we gap up (quite likely imo)