There is an overall rule in US business which states that...

There is an overall rule in US business which states that monthly redemptions of funds by Investors in Hedge funds occur after the 15th of each month.

Investors need to apply to hedge funds before the 15 of each month.

Hedge Funds may refuse to pay out if they are having problems raising cash in a hurry and they need permission:

"Sentinel told clients in a letter that it has asked the Commodity Futures Trading Commission for permission to halt withdrawals".

So, instead of a run on Banks we are having runs on Hedgefunds instead.

Tonight is the 15th of this month, US time.

Longer term, I was thinking of the DOW falling to 12000 but it could take some time.

It is clear that the world's Central Banks as a whole are very closely cooperating and this has stabilized the US dollar.

The PPT is flat out coordinating the manipulation by allowing the DOW never to fall to much. After all, a 287 points drop is about 2.2% of 13,000, still a high number.

Sofar, not that many companies with credit problems have been mentioned. Wall Street is still being investigated as to credit damage.

The Credit squeeze can best be compared with the reach of a giant octopus with its massive arms. It can reach in all directions of the Credit market, subprime or not. That is because contracts are insured by other contracts and it is the latter which presents problems.

Overall, I am satisfied that sofar the correct levers have been pulled by the Central Banks; after all, the money supply is strongly on the increase without these happenings anyway, so drowning the markets with much more liquidity is not needed at this time.

As to lowering of interest rates, the USD is relatively "strong" again. We need to wait.

Gerry