DOW PLUNGES ON CREDIT CRUNCH:
The headline: Dow Unravels For Near 400 Point Loss as Bad Home Loan Woes Spread...French Bank BNP Paribas Sparked the Selloff in Morning After Suspending Three Funds With Bad U.S. Securities...
The main problem is transparency, Eric Bolling says. Last week, BNP said its “exposure to subprime is insignificant.” In a market like this one, where rumors can cause huge swings, “transparency is way more important than anything else,” Eric said. The liquidation of risky assets should actually be a good thing for the market, but the reason this news isn’t being taken in stride is because of how opaquely it is presented. As a trade, Eric said, the last thing he wants is to be surprised.