Gripped by fear: the near-term 'price of risk' soars to highest levels on record for US stocks.
Despite a great deal of "price creation", the signs from Asia tonight suggest that risk aversion may be set to reach to the highest pitches, perhaps on record, before this rout is over.
We have yet to see whether 'the system' can absorb a crushing body-blow like that and rebound, as it should.
It seems likely it will be tested, however.
Fasten your seat belts.
Oh, by the way, whatever was said at the debate tonight? None of it will matter, depending on how the next weeks go, I shouldn't think.
It's impossible to know whether 'deleveraging' (good) is causing the continuation of debt market / credit market "weirdness" or whether there are more shoes to drop from our wonderful banking "system", in short order. Accordingly, it is possible that Great History is being written and we, the unkowning, will see it only through the rear-view mirror. The next President may have his Administration defined by economic issues ...
