All our markets in free-fall today. Very light volume. Many wait & see investors. Light volume good in that it doesn’t ”confirm” these moves –but bad in that price swings are magnified in low participation. Volatility then drives more peoiple to the sidelines –increasing the shallowing of the mkt depth that is USA financial mkts biggest global asset.

Fannie and freddie up today –entire Dow 30 down. F&F ”up” off nearly zero –on Obama’s comment that ”we can’t let them fail”.

Brains say F & F need to be broken into 12 regional autonomous units that can then serve the mkt rather than be the national dump. but an emergency re-structure requires Congress –which is gone home –and won’t be back til January 2009. More horrible timing –just when congress leaves DC, the F & F mess suddenly goes parabolic as the real news hits the public. and no way to stop the panic until January 2009.

Unless Bush calls congress back to restructure F & F. Like, now.