Fear factor isn’t just a sleazy reality show on TV, it’s what is largely driving the markets again today. US interest rates are diving as the economy slows and stocks and commodities slide. Treasury bills pay a fraction of 1% in interest while 2-year notes near the 1.60% level reached at the depths of Monday’s historic stock plunge. The dollar is steady at much firmer levels on the day though off its highs. Expectations of hedge fund liquidation between now and year-end would tend to keep these trends intact no matter what outcome we have in Washington tomorrow. It comes in ebbs and flows, but it looks like we have more of a shakeout to come.