djia down 700 overnight, page-105

Elguido

I disagree. You ain't seen nothin' yet. The Alt-A mortgages; municipal bonds and credit card debt which were bundled into derivatives hasn't hit the fan yet. Letting Lehmann go is just another fallen domino.

I day traded gold today for a tidy profit but I wanted to keep it overnight. The fact is that if the Dow implodes and drops 400+ points that profit could easily turn into a loss if the punters sell down everything they own and not just financials. That's on top of any unwinding by the Hedgies when stop losses are triggered. If panic sets in people will sell anything and everything to get out.

It's just too scary to be long anything at the moment.