Freddie Krueger came back to haunt the market again yesterday, as the market adopted the Rod Tidwell approach to the government's plan for the GSEs: show me the money! Today feels like sort of a "sell everything" day so far (though on recent form, that means you should buy everything for a squeeze into the US close.)

Consider:

1) Sell stocks, particularly financials. US banks had their worst day since 1989, and the SPX is threatening the last bastion of support. European indices have already cratered through theirs.

2. Sell the dollar. We're seeing something of a dollar de-rating here. EUR/USD is back at 1.60, knocking on the door of its all-time highs.

USD/JPY has also rolled over; a break below the recent 104.99 low could get a bit ugly.

Heck, even NZD/USD has gone uber-bid, despite the release of slightly lower than expected non-tradable CPI in New Zealand last night (Admittedly, headline was higher than expected.) The joys of the NZD trade are amply demonstrated by last night's headlines immediately after the CPI release; what's a rational trader to make of that?

3. If equities vome back, then presumably bonds will sell off.