well here we are 75 basis points later and nothing has changed. if anything its worsened. i have pointed out on several occasions of the systemic risk to the market from the subprime issue and its gradual infection of the market. problems wont be going away and things will get worse here. im short countrywide as i have mentioned before and various other bank stocks. i recommend other people put the same trades on. i personally think the us banks especially the investment banks are effectively bankrupt. countrywide and similar companies are worthless. they have no business model. as i said earlier here we are 75 basis points and oil is higher, gold is higher, the dollar is falling and for some people more importantly stocks are net lower. its fairly obvious now to the market, media and perhaps even the fed that rate cuts are not working. they originally fuelled the specualtion mania in the first place. so what now? i think the bond markets which i trade daily will no longer start to rally on bad news anymore. people will have to accept the fact that you cannot cut your way out of this problem. you have to bite the bullet and pay down the debt. put it on the balance sheet write it off and start again. good luck.