Just the First Phase

Excerpt from my last evening log entry:

"First phase in the bear market process is happening currently; deleveraging, VAR shock, high volatility -- ultimately this should accomplish the unwinding of the leveraged funding (of trades) issues and short-vol type accounts. The rest of what seriously ails financial markets will unwind over a longer period of time -- a period where the markets will have to contend with the economic reality of a long period of cash flow shutdown; highly likely that stocks have lower to go, but amid somewhat less volatility…"