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Does anyone else find it unusual that Short Term Treasuy yields are plummeting to zero and people are rushing to buy them. Obvious major flight to safety in case there are more defaults from NAV for cash like investments.

On the other end of the spectrum equities are higher and seem unfazed by what is going on in the credit markets. This even with Big Ben and Henry Paulson saying that this crisis draws similarities to the Great Depression, and WEB calling it an economic pearl harbor, shorting being banned, and the largest U.S. corporate nationalizations in American history.

It's almost as if the fixed income folks are hedging their bets the $700 Billion plan doesn't get passed, or doesn't relieve the credit stresses even if it gets passed. And it seems the equity folks aren't worried at all at the possibility that the bailout won't pass or won't work (or they just don't know how severe of a crisis this is).


I'm mostly sitting on the sidelines on the equities side in case their is a massive fat pitch (except for equity positions in FFH, FARIX, DELL, PFE, CHK). If not, maybe i miss out on a small rally.

I wonder how the historians will write this one.
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