It's not over yet. The rumor mill has it that Goldman Sachs could be in trouble too. If so they have a 200 billion dollar Index Fund. Try unwinding that and see what happens to the commodity futures charts. Also, last evening the national news listed Washington Mutual (WaMu) as looking for a buyer, but there were no bids. Help me out; didn't the news quote WaMu as been the sixth largest holder of US home mortgages?
The corn, soybean, cattle and hog futures (among others) have been catching the brunt end of liquidation during the past couple of days. Open interest contracts have disappeared by the thousands in all commodities, meaning the longs are leaving town. That's actually not good for the economy as a whole. It means that someone is loosing a lot of money, and also that the tax payer will probably be picking up the tab for a lot of it. Let's hope when it's all said and done that we don't see a bunch of executive umbrella's floating down to earth.
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