Tuesday, September 30, 2008

Chronicles Of Depression 2.0: #290: WTF?

Another personal interjection.

The Asian market did not have a bloodbath overnight.

Nor did Europe.

And the DJIA here in the U.S. did not go down the 805 points I felt it would today. It recouped more than half of what it lost yesterday, in terms of points.

Frankly, my head is spinning now.

The new drumbeat -- it began last week, but has gotten louder since the FAILout -- is Mark-to-Market rules set up in the Sarbanes-Oxley legislation.

If the advocates of rescinding a provision of that Act are to be believed, this is what's preventing the "price discovery" Treasury Secretary Paulson has stated is essential.

Further, if that rule change was made, there would be no need for the proposed $700B bailout.

Yeah, WTF?!

What Wall Street did today was shoot itself in the foot. After yesterday, people were shaken. Now it's as if yesterday we watched someone jump out a window, bounce off an awning, slide to the pavement -- and today the guy jumps to his feet, dusts himself off, and slowly walks away as if nothing happened!

But wait! What about all that talk of cataclysm?! What did Warren Buffett say? (Hey, where's Warren Buffett today?!) What did Paulson want to do? And what did Greenspan say again?

And wait wait wait! Didn't Wall Street also do this acrobatic recovery recently? Yes.

So what the hell is going on here?

Credit markets -- especially interbank overnight lending -- remain frozen. Essentially dead. Central banks all over have become the tit from which they're all sucking now.

How long can that continue? When do they get weaned?

And what does this mean for all of us?

Stay tuned.

There's still Asia tonight, Europe overnight, and Wall Street again tomorrow.

And tomorrow -- October 1st -- we'll see if this rumor is true or not.

I'm still sticking with my Countdown: Four days left.

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