It has been another big Monday for the markets and clearly all is not well. The Dow fell 504 pts. in its worst performance since the Twin Towers came crashing down.
Hank Paulson and the boys had worked another busy Sunday.
And when they were finished, Lehman Bros. was no more, Merrill Lynch was owned by Bank of America, and AIG was rifling through its sock drawer looking for over $50 billion to keep its doors open.
Of course, what will happen tomorrow now is anybody’s guess. But either way, one thing is clear: The run on the shadow banking system has begun. Hank Paulson has taken Freddie and Fannie into the bomb shelter and locked the doors.
Where it stops nobody knows.
And after two long years spent writing about this mess, that’s all I’ve got to say about it.
What happened today speaks for itself.
This train is headed for the station and nobody can stop it now.