The Markets are Killing Everyone

Equity bears were gored yesterday. Equity bulls got their comeuppance today (and since August). Commodity bulls were slaughtered today. Come on Gold futures down about $60 today! I repeat 60 points in one day!! Oil down $6. Silver $1.50!! These moves are enormous (but for the US and world consumers the commodity slide is very welcome). Of course Gold and many other commodities have been going up since 2002. And in the commodities market there often is much more leverage used. Wheat had that huge run up. Have to wonder how much was caused by leverage. I think commodity players can lever their accounts by up to 10 times. In the stock market one is only allowed to lever by a 1:1 ratio. In the financial markets it seems as though there has been one giant margin call. At the moment there are no hiding spots. Even those who thought they were safe in cash - like investments have at times run into trouble. Look at the ARS market. The ARS or Auction Rate Securities market has frozen and those who have their cash invested are locked in. The cash is likely to be returned but the timing is unknown. Unless it is good old fashioned T-Bills or Bank CDs for under $100,000 savers need to be careful what type of investments they use. Everyone is feeling this one. Unless you are a hermit and have your cash in Berkshire Hathaway CD's (they don't exist just offering a hypothetical), this has just been brutal.