Paulson is speaking right now at the Reagan Library.

I’m not sure if he’s trying to scare the market down to get the PPT short covering rally going when you think things look bleak or if he’s coming out trying to prepare you for a beheading.

The reason for this post is not for IBC gamers who are quick draw traders, but for the Internet leach who is trying to get ideas…some of you may not have the capabilities of moving quickly when the markets whipsaws around.

At any rate, Paulson said “…the housing market correction was inevitable…” as far as I remember everyone and their mother did not realize this would happen. Even Greenspan himself said his models did not view the world properly.

My guess with the GM news the PPT are buyers of futures and stocks people are trying to get out of. We will not know till the close for sure.

I’m still all in cash. If we hit 8600 DOW I go short and if we hit 7200-7500 Dow I will get long.

Just know this, for the first time in 25 years we are having a consumer/credit recession on top of a business cycle recession. All of this on top of a mountain of jobs to be lost in the coming months.

If your getting long here either have a hair pin trigger or prepare to hedge yourself.

Because like Paulson said these excesses took years to build and will take many quarters to years to unwind.

GLT

by GW