I'm sitting here watching CNBC at 3:00am. Things are bad. Really bad. REALLY REALLY bad. When the DOW opens tomarrow morning, prepare for the worst, and hope for the best. Its going to get ugly. The index futures are crashing. Yes, crashing. Everything is pointing towards a drastically lower opening tomorrow, and I hope you are all ready for it. This market is not rational. This is emotional panic selling. This is meltdown.
Check out this guy, he got stuck in US futures over the weekend and dropped 40k. Its ugly, ugly out there. The overall direction in the immediate turn is down. Its probably best to stay on the sidelines until this is over. But it may not be over for a long time.
Several banks will report earnings today...including Bank of America and Wakovia, and nobody knows how bad their financial picture really is, or what their sub-prime exposure is. After open tomarrow it is very likely that trading will be halted. Bush and the Feds will likely make some strong statements tomarrow trying to keep people calm and to avoid people pulling out more into cash.
The truth is, the United States, and its people have lived too far beyonds its means. We have lived on credit. A lot of it bad credit, bad paper. And our irrational spending on credit had to catch up with us someday, and no matter what the FED does to pump more money into the market, that day of reckoning is coming -- and the banks -- the banks who have made irrational loans, and having given out irrational amounts of credit will have to show the truth one of these days. And the truth is going to be ugly.
Bush Hooverized this economy. When your 401k has no money by the end of trading tomarrow, you can thank him for letting this happen.