More on the Credit Default Swap implosion

The CDS implosion scheduled for tonight and tomorrow's market is brought to you by Lehman Brothers, An Innovator in Global Finance.

Ten major global firms have ganged up to prevent the free market from becoming a clusterf*** of unprecedented proportions.

Bank of America, Barclays, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Merrill Lynch, Morgan Stanley, and UBS, said in a joint statement they "initiated a series of actions to help enhance liquidity and mitigate the unprecedented volatility and other challenges affecting global equity and debt markets."

I repeat my prior assertion that the vast majority of tomorrow's damage will be wrought outside of U.S. markets. The fear will be global; the reality will be less daunting in U.S. markets. As usual, world markets (Asia, Europe) will fall several percent, then the U.S. will fall, vacillate, and end up. Tuesday, world markets will recover, following America's lead.

The Fed will announce another rate cut or gift package to the financial world which will temporarily sooth the markets, putting off judgement day for yet another couple of weeks.