"Last week a series of heretofore impossible events become reality. In the wake of the bankruptcy of one of the few remaining independent investment banking firms on Wall Street, and the purchase of a second big Wall Street investment bank by the nation’s largest commercial bank, banks worldwide ceased to trust each other. As a result, by the middle of the week, the remaining independent investment banking firms on the Street were actively seeking partners, global liquidity dried up, which, in turn, drove the yield on the three-month t-bill to as low as 0.3% (that is not a misprint!!). That is the lowest that it’s been since the Great Depression of the 1930s, as financial insititutions hoarded cash to ride out the storm. It was all-out panic. Pure fear gripped the markets. The question everyone was asking was: When will markets recover , and what will stop the relentless and historic selling?"
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