Today was a travel day, flying back in time as I traversed the country from Oregon to Arizona to North Carolina. What happened while I was on the plane?
Well, for all intents and purposes, Wall Street lost its nerve. If you look at the interday trading, stocks were bouncing all over the map. For someone who is a nonprofessional in finance, it looks to me like every idea in the world was tossed against the wall to see what stuck.
Very few of the moves in stock prices are rooted in reality. However, that doesn’t mean anything, since the markets are now being moved by emotions, primarily fear. Paulson’s master plan has failed to calm the markets, and people are getting scared. (Boy howdy, am I glad I moved out of equities some time ago.)
At this point, we don’t need a zillion ideas being thrown against a wall, hoping something sticks. We need to go for the root of the problem. Glenn Beck has one of thebest writeups on how we got to this juncture that I’ve read. You should check it out. I’m looking forward to the next two installments.