Whee! And tomorrow we take out Dow 10,000. Looks like you don’t get to retire on your mountain of debt and paper, a#$%&les. This f&#%ing generation before us - so smart, weren’t they? Catastrophic geniuses.
Futures are way down. Shorts covered and then became sales. The flight to safety is well underway, killing stocks and buoying treasuries. Commodities got killed, too. And that’s just the visible market - somewhere a major bank just became insolvent, surely. Credit should seize shortly after all of Europe bans CDS and we’ll be back at square none, printing uselessly into a generation’s irresponsible void of debt.
I sincerely hope everyone is well hedged. Put options are not as cheap as they were a week ago (or yesterday, or two days ago). It’s an options expiration day, so things aren’t looking great as far as sudden reversals in volatility go.
I watched various currency markets today. It wasn’t very pretty. On the plus side, the Brazilian Real fell considerably. If everything does fall apart, canned beef products from Brazil will be a reasonably priced staple in everyone’s bunker. Who says Armageddon can’t be delicious?
The Australian dollar seems to be in free fall. I’m not sure what that means for the US, but hopefully it allows a brief continuation in profits for Australian miners. There are more predictions of a slowdown in China every day. I still maintain that the fate of China and the fate of Australia will be highly correlated, with Chinese consumption being the causal factor.
