And almost two weeks after this mess started, I still have no real clear grasp what will happen or what should happen. Last night on CNN, though, there was this:
ROBERTS: Will there be dire consequences?
FREELAND: Well, I think that what we are going to see a little bit is a fight between the political process and the markets.
I spoke to a major hedge fund manager today, who said to me the markets are very good at applying really, really tough pressure in these situations. And even with the short-selling ban, we’re already seeing the system really freezing up. The money markets have been frozen.
It’s almost impossible to borrow money. So, I think we’re going to see that pressure ratcheting up. And this WaMu — apparent collapse of WaMu, it will be interesting to see what impact that has tomorrow morning.
I expect the markets will tank hard today.
*** Update ***
WaMu was so yesterday. Today it is Wachovia.
Bush looks drunk, and I have no idea what the point of that speech was- if it was to inspire confidence, it failed mightily.