peter pumkinheads death by a 1000 cuts tuesday, page-6

No bounce tonight.

S&P are certainly taking companies to the sword.

Freddie, Fannie and a dozen other institutions that are reliant on the sovereign strength of the US. Clearing houses, banks, insurance companies are all cut from AAA to AA+.

Basically, what S&P are saying is, anything that has to do with the internal financial system of the US of A is now on negative watch, including Warren Buffet.

Also, the revitalised AIG are planning to sue Bank of America for some HEFTY sum for the sub prime losses.

And there's definately a whisper of a bank failing in Europe. People have been saying this for a few days now, which is why the DAX has been unable to even stage a breakeven bounce. Dexia, Santander, UniCredit, Societe Generale, have all been mentioned.

Suffice to say, the bad news is coming in droves. Even when its good news (ECB buying Spanish/Italian bonds), its viewed as bad news.

VIX is pushing 40. At the peak of the GFC we hit 92 from memory. Suffice to say, that if the peak of the GFC SPX was at 666, then technically speaking if the VIX was at 92 then, and 40 now, we should really be trading 100 points lower.