The Panic Continues ... II ( or is that LX ? )

More of the same, as the liquidation train wreck goes on.

Congress has shown itself incapable of doing anything rational in a timely manner. so this slog will likely continue now into December or when the new Congress is installed in the first week of January or maybe even until Barry takes office.

This drop seems like a replay of the late September fall when Congress first could not act quickly on the TARP. This time it's their inability to provide the auto industry a bit of relief. When one remembers that they can waste $25-50 billion on earmark every year, their inability to provide some relief to help prevent turmoil that could endanger huge numbers of good paying jobs is quite stunning.

US Treasury bonds are at record low yields in recent times, as I suspect all that money flowing to buy fixed rate life annuities is going to buy long dated Treasuries. Why should the insurance companies take risk on those ? They'll pay a low rate and invest in Treasuries for now.

At this point, perhaps Congress should just consider providing the auto industry with $100 billion of "debtor in possession" financing so their looming bankruptcy will be an orderly reorganization, not a liquidation. That is super-senior, so the unemployed taxpayer might not "lose money" ... his job, Congress seems willing to let go to the wind.

By the way, is a bit of "inflation" really so bad ?

Actions

The bloody morning drop worried me with more insane swings in fine stocks like RIG, so I sold the oils and some miners on the minor bounce. I had written that when the bears keep knocking - kicking - on that support level, they would likely get through. And they did.

Alpha Fund now just 50% long, holding only FCX and the small shippers DRYS (ultra-risky), EXM and GNK. I bought some more of all of those yesterday and might buy more. Those stocks, IFF they work out, have huge upside.

I am waiting for some deadlines to pass so I can do a re-allocation in Krypto Fund.

The markets are like a wild brawl - or shoot-out - of drunken gangsters. Watch out, don't get hit. Protect Yourself at All Times. Big profits await the survivors.

Word of the Day

"Ennui" - noun [$10] This is an old card from my file - I can see that my handwriting - perhaps from 35-40 years ago. But since this morning I learned the French words from which it derives , I thought to use it today.
Ennui means a feeling of weariness and dissatisfaction.
Sentence: The constant wildness of the markets have been ongoing so long that "investors" must now feel ennui and certainly resignation of a long wait for recovery.