The liars have succeeded thus far in keeping things generally under cntrol....as they have at least tried to preserve and inkling of thier credibiltiy intact. But, today, with the demise of Bear Stearns... the lynchpin for credibility has been pulled. The powers that be cannot fool the herd much longer as shock after unexpected shock its the masses.

Yesterday, Bear Stearns said everything was under control. To make matters worse, an S&P analyst was trotted out on Bloomberg announcing that the end of the subprime crisis was at hand.

Today brings stark reality back into focus. Now we have the IMF issuing gloom and doom. Apparantly things hang by such a slender thread now that the failure of the "Canadian entity" of the ABCP crisis could bring down the whole deck of cards. Now, that's leverage at its best!

Even Mark Carney, new Gov. of the Bank of Canada and former Goldma Sachs whiz kid that was instrumental in the genesis of off balance sheet derivatives, subprime etc. hax piped up rooting for the Canada connectio to be resolved by today....which we are awaitng with bated breath. Carney is looking fr a "compromise" between the Candian and global banks and that " existing accounting rules provide a degree of precision that is not warranted". Yikes!!!!

The Montreal Accors needs to restructure $33 billionof paper. If the Accord fails, look out below says the Post today, because that $33 billion represents $180 billion notional which suddenly becomes real. Citigroup says that this cannot be absorbed.

So, I wonder how the whiz kids Sinclair refers to are doing today with their huge illegal naked shorts on stocks like ECU....playing the spreads against the senior producers? Looks like thier computer modelled black box gyros could be wobbling ot of control here.