No End to the Sell Off

The sell off does not end. By 3.00 p.m. yesterday the market had hit 7066, hitting new market lows. It never seems to stop. Nothing moves the market except FEAR. At this point, the FEAR is so rampant that nothing stops the downside, and the market is no longer breathing, but simply reacting.

After Madoff, comes Stanford, another slime:

"WASHINGTON - For years, there were red flags — so many they could have massed into a crimson blanket.

As with the Bernard Madoff case, the scandal surrounding billionaire R. Allen Stanford now seems clear and obvious in hindsight. Yet Stanford managed to run his alleged scheme even while the Securities and Exchange Commission and other regulators had him on their radar screens and investigated his businesses. Stanford wasn’t charged until last week.

From his tiny accounting firm’s office near a North London fish-and-chips shop to certificates of deposit promising outsized returns sold by a bank in Antigua, ample warning signs over the years suggested Stanford’s business wasn’t what it seemed."

The SEC must be held accountable, but of course, has not been. These are the same idiots that have strict day trading rules (25k minimum for pattern day traders must be in the holders account) , protecting the little guy from himself while allowing the big guys to fraud 58 billion, that we have found so far. There will be more.

All of our "regulations" in the past 8 years have been non existent, as Greenspan's Ayn Rand philosophy of market driven controls led the way. Many of us suspect the "first" 350 billion, that came through Paulson, and has been unaccounted for, literally may have been a pay off to Wall Street, and the bankers....at least that's what the conspiracists think, and more of their thinking, so extreme in the past, is beginning to make sense.

The following influenced the market's opening on Monday, as more talk of nationalization and "paying for my neighbor's mortgage" continued on the print and air waves.

How silly we are. Our banks have, through our own Federal lack of oversight, now been caught supplying false facts even to themselves to prop up the house of cards. We are at a point that our banks could truly fail, and that more and more homes could stand vacant, foreclosed, plummeting home values even more, but we have Republicans babbling and posturing to "let the Democrats" fail, perhaps at the expense of our country's financial system.

Where we stood Monday: with a recommendation to a new call for the day, the market opened up. Initially calls were not able to be purchased, as the market ended the longest cycle of downward pressure we've seen in years.