To rest, of course.

What does a $25 - $35 billion (depends who you read) mortgage market bailout feel like if you are the US dollar? Pinprick probably, but the start, maybe, also of many pinpricks. It's a $5.3 trillion dollar problem.

The dollar index, the daily and weekly charts of which have looked so good for SUV owners recently, may not therefore be as comforting over a moderately longer view as it has so far appeared:

Exhibit 1: dollar index, monthly since 2000


For that matter, what does a unpleasantly sized hurricane turning the opposite direction from the expected (south west!) have the potential to do in the Gulf of Mexico to oil prices - in hand with a Paulson bung?

Exhibit 2: 5 day predicted track of Ike


For traders, the getting laid this week likely refers to the laying of commodity bets.

Further Fannie/Freddie reading:
If you are going to reward failure, do it bigtime
The bwessed awaingement of Fannie & Freddie

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