It sure feels like 2008. Unfortunately this time people are realizing that kicking the can down the road or government backstopping might not work because we have already tried the same thing in 2008. Throw in the unprecedented USA downgrade and a barrage of S&P downgrades this morning; we have the making of a slow motion crash. Perhaps the rules put in after the flash crash is working, but there are so many liquidations that we continue to knife lower day after day. Instead of dropping 10-20% in a day, we drop 5% every other day. Oversold is an understatement on many metrics, but when you have a complete melt down in confidence, it will be very hard to repair in the short term.
