[Orange1998]

Everything was so rosey the last few months for the finanicals. Literally overnight the market turns with no true information. Makes one wonder who really is behind the curtain on Wall Street.

[sefarkas]

Sudden turns in the market are highly correlated with unexpected Congressional legislation proposals, or sudden changes in the likelihood of previously unpassable legislation making it into law. The news over the weekend regarding Congressional action on credit card terms and conditions is a good example and the change that was priced in on Monday, 20Apr09. The unpredictability affects the models used by professional investors trying to estimate the future marginal cost of a share in publicly traded corporations.