Daily Investment Interpretations

September 15, 2008

2008-9-15  Today, the price of oil fell 5% to $95.71, while the equity markets flew south for the winter. With Lehman Brothers declaring bankruptcy, Merrill Lynch selling itself to the Bank of America, and AIG seeing half its value wiped out as it seeks $40 billion to shore up its shaky finances, the markets are decidedly worried. The Fed is pumping more money into the economy. Goldman Sachs and Morgan Stanley, who have been cited as, possibly, the next dominoes to fall, have been asked to lead a banking consortium that will attempt to shore up AIG. ("Loans made to automakers in doubt") The Nasdaq Composite fell 81.36 points to 2,179.91, the Dow lost 504 to 10,918, and the S&P shrank 58.74 to end the day at 1,192.96. The VIX hit 31 at this morning's opening, fell to 27 later in the morning, and then climbed to 31.7 at the close.
    Meanwhile, Peter Brimelow writes: Veteran oil bull still snorting.