Tuesday, October 07, 2008

Did you all have a good day yesterday? I hope the worldwide stock plunge didn't scare you. It was Europe's turn to host the party. We had a pretty eventful day, althoug thankfully there were no catfights between biz and the front page (that was friday, thankyouverymuch).

Yesterday was like the maxed out chick getting her credit cards snipped in half by the saleslady because, "I'm sorry ma'am but your card was rejected". Les cayó el veinte? There is no credit in the markets, and the top hat ran out of rabbits.

Sorry, I'm being unintelligible I know. Frankly, I have no idea if the credit lines approved by the Fed will be enough fow now. Helicopter drops can only go so far, and right now it seems all markets (except China) are spooked. The Sao Paulo and the Moscow stock markets had to shut down, twice, because their respective indexes were down 15 percent.

Our market expert said this morning that the Dow would go up today although it would behave like it had a hangover. As of 20 min ago, the DJIA is down 1.88%, S&P 2.06% and the Nasdaq has lost 2.31%. The U.S. sneezes, the rest of the world gets a cold.

What really left me cold yesterday was a warning from John Burbank of Passport Capital, that GE might go bankrupt. General Electric. (I'll pull a Biden and repeat, General. Electric.) Which just raised about $15b in stock, plus got another $3b from Buffet. The firm is having difficulty rolling over its paper, and has 22 times as many assets as it has tangible equity. Shit.

So, Roubini was right. So was Taleb.

===>Felix Salmon's Market Movers @ Portfolio: Roubini was right

Pay off your credit cards NOW. But don't panic, 'cause right now what can hurt us the most I think, is fear itself. At least for now.

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