No rally for you! Stocks are doing their late-day dive dive routine, making it 5 straight days and something like 1500 points. Rate cuts, massive efforts to unlock the credit markets talk of the government and a still-to-come asset purchase program have not been enough to lift a gloom so thick you can walk on it. Stocks end down another 200 points with hedge fund liquidation once again the culprit.
EUR/USD turned down well before shares did, capped a third time in the mid-1.47 area. EUR/JPY slumped as well, down to 136.45 after a rally to 138.70 after the rate cut.
Just crossing the wires is news that Icelandic banks have been downgraded again, now deep, deep into junk territory. Another tour de force by the ratings agencies…
Last but not least, Chuck Schumer recommends the government recapitalize the banks, just as Paulson all but announces his intention to do just that. Now Chucky Cheese can claim it was his idea…
I need a drink, a hug, or both…:(
