Systemic Risk at Hand

9pm Sunday and all is not well - The “systemic risk” that Hank Paulson and the US Treasury and Federal Reserve has been trying to ward off may be at hand. 

Reports are coming across fast and furious - one that there may be an emergency rate cut! Separating the rumors from fact is necessary - but until the dust settles - volatility seems to be certain as the official news is leaking out.  Panic is thick!

Watching the currencies - the dollar has dropped some - but things are tenuous. A flight to safety is making me think gold. Interesting how gold was driven so low last week.

Is This the Bottom?

Uncertainty in situations like this often signal a bottoming process that is fraught with twists and turns like a unknown roller coaster or a runaway train.  A calm head is needed to weather the storm.  Smart moves will be rewarded.

End of Investment Houses and Broker Dealers?

In a surprise move, Bank of America is rumored to have bought Merrill Lynch and John Thain may join Lehman Brothers employees in packing his desk.  It appears the two giants that will cease to exist come Monday. There is talk that this is the beginning of the end of the Big Investment Houses and Broker Dealers. 

Reading the wires - AIG is looking to sell Billions in Assets looking for support from Ben Bernanke and the Federal Reserve.

Unprecedented and Historic

CNBC is working with full staff Sunday night - same as when Bear Stearns was bailed out. Reports that the Treasury and FED are taking equities as collateral…

Market News International reporting that the FED is “Launching several initiatives to support the markets” and that the CFTC has made a rare statement late Sunday night that it is protecting Lehman’s commodity and futures customers and they are in touch with international regulators to help maintain stability of the markets.

The Wall Street Journal is saying the American Financial System is Being Shaken to it’s core”

Stay Tuned… Trade Safe… Trade Smart… or get out of the way…

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