Tuesday, September 23, 2008

Does the Market Know How Congress Works?

Surprise, surprise.....no package yet. Paulson & Bernanke will be running their roadshow today, who is the dog & who is the pony? I haven't mentioned the money market situation, but it deserves attention.

Breaking the buck hasn't happened often. LEH & AIG short term debt and commercial paper falling off the cliff was the culprit. The panic that ensued pushed T-Bill yields to essentially zero. Bernanke admitted that last Thursday was the closest we have been to a total meltdown.

Meredith Whitney cut estimates again for the money center banks.

Equity futures are modestly higher, gold is down a bit, oil is down a bit (remember, we rolled out of the Oct contract).

Wait and see mode.

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