...Bill Cara's take:

November Crude Oil is down over $4.00/bbl to 96.55 because the banks have cut credit to those speculators who drove the price to almost $150/bbl just two months ago. In a panic themselves, the banks have limited funds to lend. Depositors are withdrawing funds, which means that the multiplier reserve banking system is operating in reverse. Banks that are short funds are trying to borrow from stronger banks, and finding limited success. Some of the biggest clients, the hedge funds will be forced to shut down, flooding securities and futures positions onto the market just as frightened traders are pulling their bids.

In a few words, the speculative ebullience is now working in reverse, undermined by the credit markets.

The $USD is being supported by the Fed to try to stave a run on the banks, and precious metals holdings are being sold and short positions being increased by the Interventionists. Gold, silver, platinum and palladium prices are cratering going into 8:00am ET.

But this move against the precious metals will backfire. The recent cycle bottom will be tested, and speculative Funds and under-margined brokerage accounts will be forced to sell. A new bottom or a confirmed bottom will be set here and then, I believe, the prices of the precious metals will begin to soar. Keep your ammunition dry because you are starting to see the deer in the headlights look on the faces of the Interventionists. If those people (Paulson et al) compound their mistakes here, there will be attempts to impeach and arrest them.

Remain calm. The voice of reason is on our side. We have done nothing wrong. We are the ones who deserve to come out of this crisis stronger and weathier.