On CNBC today, someone blamed today’s selloff on the weekend Barron’s piece trashing Phony and Fraudy.
That raises an interesting question: Why would a Barron’s article, with essentially no new information in it, send Fannie down 22%, Freddie down 25%, and whack 2% off of the markets?
Our favorite bulls are going to call "retesting the July lows" but I doubt that is all there is to this.
Putting questions about Efficient Markets aside, what was today’s action all about? Was it really the Barron’s
Bounce Trounce, or was it something else?
My own guess is that Investors are begrudgingly recognizing that the financial system has major problems, real estate is in a secular decline, and that the economy is teetering into a recession — and none of the above is likely to be fixed anytime soon.
What are your views? Any of the above ring true?
What caused today’s major whackage, how long is it likely to last?
What say ye?