Friday, December 19, 2008

Twilight Zone

There are a number of things going on in the financial markets that are unprecedented or were unfathomable six months ago.

  • Oil has gone from $147 to $36

  • The 10-year treasury is yielding 2.08% and might go below 2
  • The Fed funds rate is about zero
  • Equities have done nothing but go down for the last year
  • The U.S. Government is intervening everywhere
  • Housing prices cannot find a bottom
  • AIG, Fannie, Freddie, Bear Stearns, Lehman, WaMu, Wachovia, Merrill Lynch are all gone

  • Two of the big three auto makers may be bankrupt within the week

  • The 90 year old Ponzi scheme is alive and well. Just like in the film classic "The Sting", the oldies are the goodies.

It's Friday and a storm is coming in the Northeast. Enjoy the weekend.

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