A week to forget again for the DJIA, especially for GE. What a pig. GE represents the constant drip of liquidation the general markets have been unable to shake. On the tech side, some stocks such as AAPL have briefly been able to buck the trend, but if you discount how the cult is trading, even it could not take out last week's highs and thus still has to fight off the lower general trend.
Late on Friday, Freddie Mac announced it will request another bundle of cash from the Treasury. These streams of requests from the BAC, CIT, and now Freddie underscore the insolvency of these financial institutions. We now know that TARP, the first half, was originally approved because the Fed and Treasury told members of Congress the nation's banks were in essence broke or would be shortly if they were not pumped with liquidity. Now the pumps are still pumping and everyone is looking overboard to see if the ship is fixed and has stopped going down. And that just how the stock markets are trading and how the bond markets are trading. No one really can see below the waterline, but some signs, like the aggressive liquidation taking place in GE, makes traders wonder if it is possible to have a catastrophic failure during repairs.
