and stocks are not collapsing. now, this is either the best preparation for a rally, since the market ignores bad news in size. or, which i tend to believe, after all the horrible events of recent months, the market does not at all realize what kind of news the most recent really are: devastating, even by the terms this year already established. madoff and citadel are per se issues. but they will trigger chain reactions. investors will have to write each and every engagement in madoff to zero by monday. and if they are honest to themselves citadel's -50% and suspension of redemption indicates that conservatively you have to write that down much further as well. now, many many pension funds were invested with these two. things come to a point where not even the combined force of all governments can seriously buy out all parts of all economies. don't forget that even the government finally pays stuff out of ... the economy. there is a limit to everything.
on top of that we will soon have: - coming isreali attack on iran, the question is only when - another false flag operation on american soil probably much bigger than 9/11 - continuation of stealing people's wealth on a MASSIVE scale by the military complex (pentagon), current total figure is around $4-6T ($2.3T admitted by Rumsfeld in Sep'01) - the collapse of retirement plans in Europe and U.S. just in time when baby boomers will start to retire while ~95% of the population still having no slightest clue what's really going on. which opens doors for the ruling class to do practically everything they want.
Closer to 10 trillion according to Catherine Austin Fitts (Fitts served as managing director and member of the board of directors of the Wall Street investment bank Dillon, Read & Co. Inc., as Assistant Secretary of Housing/Federal Housing Commissioner at the United States Department of Housing and Urban Development in the first Bush Administration) http://news.goldseek.com/GoldSeek/1218694140.php
Good luck predicting the reaction. I personally have never found soothsaying a reliable method for making trading profits.
agreed. we are doing systematic trading. the only time we intervene is occasions like this - i do not want to be massive long come monday morning. but the systems don't intend to be anyways. even as a system trader you end up thinking about the overall situation - at least i do. i find this madoff thing as weird as this socgen trader: in the midst of every trouble possible you have some breathtaking fraud as kind of cream on top of the already icy cake ...