Market Likely Uneasy Over Bear Stearns

[dkf]

"We're sort of in uncharted waters here," said Brandon Thomas, chief investment officer for Portfolio Management Consultants, the investment arm of Envestnet. "Usually the market does a really good job discounting things that are unknown. Now it seems like the unknown is too unknown -- they don't know how to discount it."

http://biz.yahoo.com/ap/080316/wall_street_week_ahead.html

[Warpy]

1. Ha! Translation

"We're looking at all the trash paper in our asset columns and realizing the shit is about to hit the fan. Oh why did we try to goose our profits with all that shitty hedge fund paper? Oh, why is it always MEEEEEEEE??"

I knew when I heard a talking head mention a "Minsky moment" yesterday that the shit was hitting the fan all over the place. This is what they're betting few people listening to them understand: http://en.wikipedia.org/wiki/Minsky_moment

It's not as though a whole lot of us haven't predicted this for years.