The Donut-shaped Recession

The markets have begun the October plunge as anticipated by some.  Missmc has sat through the rally with the cash-on-the-side bunch.  It is the looking at the wizard behind the curtain phase of things and, well, really, he is not so bad, just a bit of a charlatan.  Not an evil kind of charlatan, but, rather like the parent that turned out less glorious through adult eyes.  You know, the one you still yearn to see as you did as a child.

The financial markets may bump down slowly with a half-grin and run the course as long as we do not experience something ummm...like a CIT bankruptcy.  As noted in the Financial Times, the bankruptcy likely hinges on the CDS levels on CIT and who holds them. There is at least 52billion worth of CDS out there on CIT.  My thoughts?  Havoc and the straw that...?  Quite possibly, if coupled with other economic variables.  If you've read yesterday's post we can perhaps begin to call this whole affair the beginning of the Donut-shaped Recession.   More on that here on the BBC with the news that "Dunkin Donuts President quits"... 

I know, I know.  you are visualizing that.  There is a hole.  As for going round and round upon itself, well, that is a shape that would be impossible to graph, but, entirely understandable as an abstract...;)