Stunning reversal

[Joanne98]

http://globaleconomicanalysis.blogspot.com/2008/09/stunning-reversals.html

went to bed at 4:00 AM.
At the time....



Treasuries were absolutely getting crucified
The Dollar was sinking vs. the Euro
Nasdaq Futures were up 40 points
S&P Futures were up 38 points
Gold was soaring

At 10:30 AM


The long bond is flat with a minor selloff on other parts of the yield curve
The Dollar is green vs. the Euro
Nasdaq futures are -15
S&P futures are +16
Gold is flat and the $HUI is getting crushed after a strong opening

I just got off the phone with the Wall Street Journal asking me for comments. This is what I said:

I went to bed thinking "This is insanity. Fannie and Freddie equity holders are going to be wiped out. If the Fed bails out any other financial institution equity shareholders will also be wiped out. Thus it makes no sense for financials to rally on this news."

It took the market all of the opening bell to come to this conclusion. Let's take a look at two institutions very likely to fail.
http://globaleconomicanalysis.blogspot.com/2008/09/stunning-reversals.html