“Unless there’s a financial Armageddon everything will be just fine.”
SAM Advisors

Truer words were never spoken. This is why I don’t watch financial TV during the day and am glad not to be a guest saying dumb things.

So, we got some dollar pumping and related commodity weakness as the WSJ suggested that the Fed may cut a quarter point on Tuesday and then stop. C said they’d keep the dividend and everyone got all lathered-up to sell the previously hot commodity sector and buy financials.

Volume picked-up smartly but breadth wasn’t really impressive. [You’ll note Yahoo/Finance’s continuing struggle with math 101.] The action was focused in bigger names but the A/D line in the NASDAQ was negative meaning the heavy volume was focused in the biggest names.

…

In the last week there has been a rather big flap about LIBOR rates. It is a very serious matter. The Wall Street Journal pointed out a week ago that these rates might be misleading. There have been various stories following up on this and noting the defects in the method of calculation and the implications for US markets.

We believe that the stories capture neither the significance of the implications, nor all of the possible reasons for the problem.

Four months ago we worked on this issue. While we urge readers to revisit the entire article, here were some of the key points:

Readers need to know the following:

Much of the popular discussion of LIBOR moves relates to other currencies, not dollars.
The relevant discussion of LIBOR rates in US dollars pertains to so-called “eurodollars.” These are dollar deposits held outside the US (not necessarily …