Fiends In Stocks

[DeepBlue1]

Santelli isn't happy with the amount of "thaw" in the credit spreads even with all this liquidity, and I think he's hinting at something I've been saying.

Namely, that the banks KNOW HOW BAD THE CDS situation is and they're still scared as hell to lend.

I have a bad feeling in my gut that we have a BIG SKELETON still in the closet that's eventually going to get discovered.

We may be learning soon that the whole CDS thing is even worse than has so far been divulged by the crooks in the banks and hedgefunds. I'm just wondering if... now that the govt is involved in the banks... ESPECIALLY the banks that USED TO BE INVESTMENT BANKS that are now under the rules governing regular banks...that when auditing takes place all this could be revealed in full.

Might be a NUCLEAR ROADSIDE BOMB about to explode!

If it does, the liquidity required could rise EXPONENTIALLY. But also....the hedgefunds may need to DUMP EVEN HARDER than they already have to raise funds for redemptions, etc.

I think the market is beginning to wonder the same thing AS WE SPEAK.

The spread should have dropped back to normal IMMEDIATELY when the govt GUARANTEED all the lending. Something really smells about this situation!

PS: just read your last message. Sorry to bring yet another IF into this situation, but something REALLY ISN'T RIGHT with these credit spreads. My gut and my nose are both getting twitchy about this.

Try to imagine ANOTHER LEG DOWN in this mess. Cramer's 6000 may still be in the cards. God!

PS: See the VIX CHART below. It's RISING AGAIN! THIS IS NOT GOOD!