Uggh. Credit woes are back in control. Commercial real estate is the latest focus as spreads on CDOs blowing out in that sector. Looks like Paulson may have spoken too soon in saying he would not deploy the second $350 bln and leave it to the next administration.

The Dow closed at trend lows of 7,997 today as did all the other major US averages. Bonds are in hot demand and the dollar and JPY are king…where have we seen this story before?