NOBODY KNOWS

Why the market near collapse? No matter what the TV assholes say, and trust me they are all assholes, nobody knows. Credit crunch? Bullshit, there's plenty of money around. Weak dollar? So why didn't it happen last week? The insanity of the anti-capitalism Democratic Debate? 500 points in two days? The hedge fund collapse? Part of it, but only a small part.

We have a saying in the brokerage business that always explains ups or downs that goes like this: the market went down because there were more sellers than buyers. That is the only reason the market went down.

Watch your asses: these TV phonies all tell you to buy on "dips" and stuff. They are full of it. Another way to say by at the bottom and sell at the top when everybody who knows anything knows it is impossible to spot either a bottom or a top. The indexes look like shit. Look at the DJ chart at the top. The major fifty day moving average has been shattered, a moving average watched by all traders. The red line is the 200 day moving average, if that is penetrated the world is over.

Meanwhile, debt is now a problem for the big boys.

Bear Stearns (BSC) said late Thursday that it seized assets from one of two hedge funds that is now nearly worthless. Bear couldn't meet margin requirements for its $1.6 billion loan to the fund this month. Some $1.3 billion remains. Absolute Capital Group, an Australian hedge fund, halted withdrawals from two of its funds on fears over subprime-related losses.

Wells Fargo (WFC) said it would close its wholesale subprime business, which made loans via third-party mortgage brokers. That accounted for about $6.4 billion of its $397.6 billion residential loan volume last year. Big banks are likely stuck with more than $22 billion in loans related to buyouts of Chrysler (DCX) and Alliance Boots, two big deals led by private equity stars Cerebus Capital Management and Kohlberg Kravis Roberts, respectively.

Deal making in general is expected to dry up.