Friday, February 27, 2009

A Massive Catalyst Next Week?

Could the government change the rules regarding CDSs next week? Because of the looming AIG CDS event? Or might they just let AIG fail? (If they let AIG fail, I think we go below 600 on the S and P...) If they do change the rules vis a vis CDSs, would that kind of have the same impact as changing mark to market? Or the uptick rule? I'm with Todd at Minyanville - I sense a massive binary event coming soon to the market; but do I dare hope it'll be a good one for the market? (I've been wrong often lately in my thinking that the government will do the right things for the economy, the markets, etc.) Could they actually do something right this time?

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