I am guessing there was a leak before market closed on Friday that something was about to happen. I suspect that shorts covered en masse because they didn’t know what was going on. Once the details of this disaster is digested, I suspect that the markets will NOT be happy in the long run (but then what do I know). On the other hand, there may be a huge relief rally. Will know more when Paulson talks today, but right now it looks like both the common and preferred shares will be wiped out (as they should). If that happens, there will be even more pain for bank stocks as many own a lot of these. We shall see…
