Pervasive, terrifying fear in the financial markets. The US$ fell 3 yen within 45 mins after the Federal Reserve announced that it will inject more money into the financial markets. Traders interpreted this as the Fed trying stop something more sinister from happening and that there are banks and brokerages about to collapse like Bear Stearns.
When I got home, I checked the price of Citibank stock it had fallen from $21 to $18. I've been checking and checking the numbers from Citibank for sometime - even if it takes a hit from the SIVs assets and Level 3 assets, it should be able to survive this crisis. I've been waiting for months to buy this stock....although I prefer to buy it at $15, I'm not too sure that it will ever get there - $18.30 will be my entry point for Citibank....lets see how much this stock is worth 6 months from now.
"Be fearful when others are greed and greedy when others are fearful" -Buffett.