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[ogm]

Here is what we already know... We know that losses in the banks are astronomical. We know that money market funds are shutting down. We know that all payment on all mortgages in the world have stopped. We know that real estate is worthless. We know that economy is going into recession. We know that Hedge funds are experiencing record numbers of withdrawals. We know that derivatives tower is shaking. We know that yen carry trade is unwinding. What don't we know ? Ok... But I'm going to stick with my pals Warren Buffet and Eddy Lampert here, and keep buying banks. new position in LYG this morning.

Edited by ogm, 15 August 2007 - 08:31 AM.

[Cirrus]

We have Big Ben showing his stuff. He just took over and needs to 'build a base' for his Fedship. Greenie had a similar event in a virtually parallel situation in 1987. There's an election in Nov. This is a sever ST liquidity crunch to bring down persistantly high commodity prices and set the ground work for lower rates into the election. The election will be a disaster for the Republicans if homes, stocks and Iraq are all big negatives. My guess is we get 15% or so down in the SPX and then it's up for a while.