There is a drunk driver driving the market right now, if someone doesn't come and arrest this irresponsible driver its going to crash!!

You can thank Bill Gates! Ie: the PC and add Al Gore's , The Internet , Add Day Traders and Millions more Ametures Gambling? And look what happens...This Mess. Inwhich Those with $100k or more are making Ton's of Cash playing Puts and Calls.. Just in last couple of days? a 4-5% swing.!
And that, my friend is Good Money! Here in River City!

Hmmmmmmmm Actually, the market plummeted yesterday on the FED's annnounced rate reduction, then recovered at the end to reflect the continuing bon hommie resulting from the rape of Bear Sterns. Today, it was reported that Merrill Lynch is suing a counterparty insurer for refusing to cough up about $3 billion for insured toxic CDO's. That kind of news, together with the sobering up by the Bear Sterns partygoers, probably resulted in the slide-back.

Unless some spectacular good news was around at the opening bell -profit taking should have been expected. The market has a fickle feature of moving higher when a large Fed rate cut is in the cards. This was expected on Tuesday, the Fed delivered, the market moved and the smart people started buying early anticipating the frenzy. On Wed they started selling. This is not the day traders, this was knowledged savvy investors.
The whole economy is shakey, but it is still greed driven. Greed overcomes fear - so far.
The biggest piece of news today was the policy changes in Fannie and Freddie. I don't know the details yet but it is obvious that some restrictions have been lifted. Essentially it sounds somewhat like a back-door government (taxpayer-were responsbile) bailout. If it applies to all of the sub-prime area and includes the speculators, it's a crummy ploy. It just might as the government is also trying not to repeat the resolution trust, which by the way, was as crooked as a snake. The investment banks reported - neg. to so-so, but after all the write downs this was welcome news. The commodity market took a dive. Thats real welcome. Oil is too high and killing what is left of the average persons buddget.
Oh well, tommorow is another day.
C'est la vie.

Sure there is FEAR but what about the greedy CEO's cutting the jobs of the working man trying to get them to do more and more.Bush and the WAR. END!!

Unless you know what a REPO is, you can't possibly understand what happened to Bear Sterns. A Repurchase Agreement is a Securities Transaction which allows the owner of securities to use them as collatural to borrow astounding sums of money daily and pay a relatively low interest rate for the borrowed money. When the value of the owned underlying security plumets (as happened with Fanny, Ginny, et al., it adversly affected the amount they were able to borrow beause they were required to recalculate the value of the underlying securities on a daily basis i.e. 'mark them to market'. Bear Sterns always shunned the average 'cash rich' institution in favor of doing business with killer Hedge Funds. In a way, they got their come uppance.

Where is Paul Volker when we need him? It would be refresing to have a few grown-ups in charge for a change. But I guess that is asking too much in today's age of entitlement.

As for now, sell into rallies. Take the money and run.