$30 Trillion

It is hard to believe $30 trillion can be lost so fast and globally...in the capital markets....of course all pretty much record setting.....

Mistakes are still being made in haste to trade, selling stock to meet current liabilities like Calpers (The Nations largest pension fund) is doing last week.....their short term liabilities are to continue funding in private equity and meet commercial real estate commitments...nutty! Talk about giving money away.

What we do know:

1) The US Dollar is over bought.
2) US Treasuries are over bought and "crowded trades"
3) Stocks are over sold....and are rarely this cheap.
4) Buyers of corporate bonds are too early right here.....better buys later out as the market settles down...
5) The elections will pass and be a non event...maybe McCain surprises.
6) Panic lows have historically occurred on the day of the 27/28 of the lunar cycle, which are today and tomorrow. The panics of 1857, 1907, 1929, 1987, 1997 all marked their lows on these days in October.
7) Cash is at record levels...so is bearish sentiment.
8) Short interest is declining.....
9) Derivatives are about to be abolished, listed and regulated....those OTC "contracts" will be null and void.
10) Hedge funds are over. Those still in them will be in the courts for years trying to get your money back and out.
11) Private equity will be unwound......like venture capital has been.....and not talked about again.
12) Merger and acquisitions are about to explode. Those companies not with first tier relationships with BAC, JPM or WFC will merge with the companies that are over funded.


What ever happened to global warming, rising oceans, $200 oil, $10 corn, Housing doubling in price, hurricanes destroying the world and the Chinese taking over the world.......

Funny how time moves to new themes every few months now.....the current panic will pass....and be a distant memory in 2009...for those still standing.....and properly capitalized.

Less than a year ago executives at Gazprom the largest oil company in Russia said they would be the world's first trillion dollar company in market capitalization. Today they are having a hard time funding their current daily business....there has not been a new road built in Russia since Putin has been in office.

Danny Boy seen here looking out over the changing fall colors...looking forward to the end of October this week. It is snowing here today.