Well here we go ago Merrill is writing down $14.2 Billion related to sub prime. Loans are being written down to 34 cent on the dollar, that s a pretty big write down if I should say so. Let's look at this more analytically. Today news makes market write down somewhere near $120 Billion wow, that's a lot of money in money heaven I wish i have 1% of it, well i regress!!! This has alot more to go and let's say this here and now if it wasn't for the Saudi Arabians and the Chinese infusing capital into these institution they would be BANKRUPT.
8:30 Housing numbers were horrible, housing starts for December was down 14.2% and back to 1993 levels. Obviously the economy is on fragile ground and we need to thread lightly. This morning Bernandke speaks at 10 am and it will be very interested to hear what he says in lieu of what happened this morning. I personally believe the FED Chairman should resign as he is too much of an academic to truly prove effective like Greenspan.
The nightmare has just begun to unravel and we will see in a couple of months how it turns out. This morning I was hoping for a gap up to short as yesterday was a very weak showing of the bulls, lets hope that Bernandke will talk us up so we can get short
Good Luck
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