This is what napalm in the morning smells like, this is the sound of a primal scream: Dow down 38 points, or 0.35%; S&P 500 down 13 points, or 1.1%; Bank of America up $1.16 a share, or 3.4%. If this is what markets look like when all the news is really, really bad, then I guess they’re much more resilient than I ever gave them credit for.
Obviously, the real carnage is going on in credit markets, not in stocks. But still, the stock market is normally a pretty good indicator of sentiment. And its behavior this morning does give me some glimmer of hope.
Update: Just noticed that Libor actually fell today, even if only by half a basis point. It’s still insanely high, but at least it’s not getting worse.