Sunday, September 21, 2008

We Remain on the Brink

If anything, the $700 bln rescue package for financial institutions may temporarily reduce market volatility over the next few weeks. That's assuming it quickly passes. We would be surprised if it didn't. Yes, Hank Paulson told the boys and girls on the Capitol Hill leadership squad a scary campfire story, complete with Ben Bernanke going "boo" with a flashlight to his face and we've got the biggest blowout to the federal budget -- really to any government budget in the history of mankind.

Bottom line:

Our expectation for the high risk of an autumn systemic failure remains intact. Paulson and cohorts have actually upped the ante....

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