Hangover Wednesday

Hangover Wednesday
The market hates unknowns, now that the US knows Obama is the next president.

Wednesday had a big sell off, 486 dow points. I guess now that the big party is over, back to reality.

Back to the cheery news:
October five year high for payroll reductions in US, 113K.
Asian stocks rally on Obama win
Steel takes a significant hit, when scrap metal orders are canceled.
US Personal Bankruptcy soars 40% in October
Steepest decline in Global GDP since WW 2, down to 1% for 2009
NYC Fire & Police hit by budget crunch
US Fed balance sheet could hit 3 Trillion by EOY : My Spin, the fed "assets" taken from companies as collateral is worth at "best" 33% of face value. US better be prepared for an additional 2 trillion dollar debt above 700 Billion "Rescue package"
Bond insurer ABK took 2.3 Billion dollar hit, left with 113M cash My spin: Bond market fireworks to begin once bond insurers fail
Great article on the Massive mortgage corruption in Washington Mutual My spin: After reading this, how can the US government justify taking ownership of WaMu's debt? Why should the taxpayer take the hit for this level of recklessness?
Apple slashes Iphone production.
Wells Fargo offers 10 BILLION dollar stock offering. Yikes! Can you say implode?

General Motors says "time is very short" before it collapses. My Spin: Wow, I must be a genius! I stated with 700 Billion dollar bailout for financials that what money would be left over to actually save industry in the US?
Federal Government to offer 10B in 30 year bonds My Spin: Now we are talking! Get ready for the bond market to start showing cracks. I believe people will demand higher interest rates for 30 year bond, since, inflation is a possibility with all the loose printing. Once this genie is out of the bottle, its not going to be pretty.
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