I don’t like the above image any more than you, but let’s face it, the country is about to be auctioned-off to overseas investors. It’s a pathetic situation.

Paulson and Bernanke came up with a rescue package “of sorts” for FNM and FRE that was greeted positively for about 10 minutes after the opening this morning. The possibility that the Fed/Treasury would directly intervene to buy stock of these two institutions was a unique twist to previous rumors. After all it seems they only need to threaten that to squeeze shorts one would have thought. But no, Mr. Market is calling them out on it.














In the meantime, bank’s are in deep trouble and depositors are demanding their money now! It’s been said that IndyMac depositors may suffer $1 billion in uninsured losses. Wachovia, Key Corp, Washington Mutual were among other institutions rumored to have troubles. Maybe Chucky Boy “Where’s the Microphone and Camera” Schumer can stimulate runs there too!

This is a scary market without question. I remember the same feelings during the Bunker Hunt silver crisis in 1980 when silver prices ran to $50 and then collapsed causing tremendous stress on brokers carrying his positions. But, we got thru that okay. This crisis still has to play out.

Volume remains heavy and breadth stinks.