01.30.08
Today Will NOT be a Dull Day….
I know, I know, I’m not flapping my gums as much here. Do not worry folks as I will have a LOT to say come tonight. It would appear based on a CNBC news story that the monoline crisis is about to come to a head and that in and of itself is interesting. If the other ratings agencies downgrade them today or tomorrow the sound and panic you hear will not be from just the stock and bond markets. It will be a loud cry of anguish from the RNC who’s party will get slammed with the blame for the collapse of the economy and Western civilization as we know it (ok, that’s a tad bit extreme but not too far from the truth when it’s all said and done).
Stay tuned to the Fed at 2:15 and worse, the reaction of the bond markets all day long. If we suddenly see the corporate and muni bond markets implode the downgrades are forthcoming. Right now as I type this at 4:30 in the morning today, it would appear a small flight to safety is underway in the U.S. Treasuries.
This is what I would call a bomb shelter week. Get in it. Grab some popcorn. And enjoy the show……
