Fried

The stock markets are gyrating wildly. Every day brings news that in more sedate times would have been thought to be science fiction (or maybe horror.)

It’s quite possible that there “will be a run on thousands of highly leveraged hedge funds” these next few days. This means they will have to dump their holdings on the market to meet redemptions, something that will only increase volatility and chaos. Sharks will then attack anything that looks wounded. Welcome to the jungle.

I’ve been trading stocks and options, mostly puts, which increase in value as the stock drops. These past couple of weeks have me, and I suspect most anyone close to the market, fried. There’s also a sense that these times are historic, will be written about in history books, and decisions made now will have vast and unalterable repercussions. I’m also willing to at least consider the possibility that Paulson may have stopped – at least for now, hopefully for good – a complete meltdown in the world financial markets. Yeah, I think it did get that close.

“Me, I’m sitting so patiently / Lying on the floor / Just trying to do this jigsaw puzzle / Before it rains anymore.”