Sense on Cents

****I hope that people can access this article which will appear in tomorrow’s WSJ. This piece gives a great recap of the very painful delevering (unwinding investments made with borrowed funds) for Citadel, one of the higher profile hedge funds in the business. — Wall Street Journal

Markets are down another 4-5% on the day and app 10% for the month. Today’s highlights (or lowlights…) being….

1. Goldman Sachs announces that they expect a loss of 300,000 jobs in tomorrow’s employment reports from Dept of Labor. Consensus estimate is that the economy lost 200-250,000 jobs. Markets are very nervous that this number will be even worse but regardless the overall rate is headed well north of 7%…

2. Cisco announced after yesterday’s market close that they had their first revenue decline in 5 years…

3. Blackstone (one of the largest private equity funds in the business) is down app 15% on negative earnings report and negative outlook…

4. Now for the good news…Wal-Mart has positive earnings and outlook for holiday season…this is a recession play …

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