“98% of the world is long and they fight dirty,” was my tag line on TF for a long time. Paulson has about 4 hours to pull a rabbit out of his hat.
A large part of who Fed/Treasury is trying to placate are our Asian debt holders. I’m going paragliding today to avoid the stress of even thinking about WTF could happen. As Davelj has said, financials should shit the bed, but protecting the longs is the order of the day. I’m not a religious man, but I’ll say I find myself praying to dog that we can just get this over with. Rip off the fucking bandage and get the full blown asset deflation under way. Otherwise we will have that second GD that I and others keep fretting about.
If you think there is a lack of confidence in our banking system now, try and imagine what would happen if this went on for years. With the govt bailing out these institutions EVERY time the market starts defibrilating. Nobody would trust any financial entity. Pile an inflationary reaction from the Fed on top of this when they really panic to stop deflation and wow things get pitchfork ugly.
