The point of no return

Another historical day on wall street. After Monday drop of 500+ points, the DOW lost another 450 points today. While the Russian market had to be forced closed 2 days in a row after dropping more than 17% each day. A quarter of the Russian market value vanished in thin air within 48 hours. 

However, we still see some "level headed" financial analyst spoke out about the matter regarding the lost of confident of Morgan Stanley and Goldman 

Quote: "Glenn Schorr, an analyst at UBS AG, said today in a note to investors that the market reaction was ``insanity.'' Goldman and Morgan Stanley aren't at risk of running out of money because they keep plenty of cash on hand and can borrow from the Federal Reserve and a consortium of banks set up over the weekend, he said, noting that both have enough capital to absorb any losses."

So the market is insane. Goldman and Morgan Stanley have plenty of cash. If they do, why are they considering merger with other banks. Why did Morgan ran out to the Federal Reserve for loan immediately when it was available back in Feburary? Why does credit-default swap on Morgan Stanley debt cost so much? 

We will always have those outspoken champion calming down the market. The so call "insane" market is indeed very emotional. It is better to join them than fight them. In the long run the truth will review itself if not sooner.