- With a market like this, Scotty needs to figure out a way to get the warp engines back on line. Impulse power isn't pulling us away from the gravitational forces (fear) of the credit markets. Today was just ugly. Major selling commenced late and was relentless.
- The bear thought is that we're heading lower on this "new leg down" of a bear market. The SP500 is now below the 200dma. Heck, the SP500 is now negative for the year!
- One bull thought might be the complex four-standard deviation move in the VIX. Might have to fire that one Adam "The VIX Man" Warner's way to get his thoughts.
- I remain bullish and believe that we're in a bull market and corrections are an opportunity to increase aggressiveness. I don't think the credit woes are a big deal, and that we're just returning to a more normal credit environment. Remember, it was only a handful of years ago that you actually had to have a down payment in addition to good credit in order to buy a home. We're returning to that. No more 103% loan-to-values on a negatively amortized stated-income loan to cover the home price and the closing costs. Those days are gone. GONE!
- In addition, the big banks are fine. They'll take (and have taken) a hit on this. The big banks are diversified creatures. The result of this will be less competition as many of the small mortgage companies go out of business. Just thinking ahead, and that C and BAC "may" be long-term winners from here. Not a recommendation.
- But it's all about fear right now. Forget about fundamentals. Forget about GDP and corporate earnings growth, low inflation, low unemployment, and rising wages. Oh, and the four-standard deviation move in the VIX? Forget about that one, too. The headlines are only reporting the bad news.
- Well, Larry Kudlow likes to report only the good news. Calls what's going on a "Temporary Power Outage." Wall Street remains caught in a tizzy over a power outage in the credit markets. But Main Street is in fine economic shape, according to the latest reports out of Washington.
- Well, I do think things are bad for Mattel. What parent will have a Mattel toy at the top of the Christmas list? Don't you think that every kid who sits on Santa's lap will ask for "a toy not made in China?"
- Bloggers film under skirts, due in court. Two Dutch news bloggers caught filming under women's skirts in a car park in order to warn the public of the intimate views afforded by see-through stairs must appear in court, according to their blog. Drat. There goes one idea for my "second career."
- Man, so busy I forgot that Madden 2008 is out for the Wii (as of yesterday). Something to do. I'm going to go pick it up.
- Where did the time go this week? Holy smokes.
