Financial markets really hate uncertainty, don't they?

[randomness]

"That stampede you're hearing? It's folks running for the exits."

The biggest problem right now is that no one has any clue who all are holding the bag, or even how big the damn bag is. So while it doesn't hurt that the Fed and the ECB are opening the credit windows and throwing money at the banks, that doesn't make any of the banks less fearful and suspicious of each other.

And fear and suspicion? Bad for markets, just like they're bad for any other relationships.

Comments

[outlawradio.livejournal.com]

Right, but it sort of doesn't matter when to buy if credit is not available, which is the big worry now; will money be lent? If it may be available in the future, but at a higher rate, when it is not available at all now, that is the time to buy; one can always refi down the road.