Is Barbera really on to something here? Is it possible part one of the “end game” is upon us with a huge short squeeze about to commence? After all, the PPT can’t be that stupid, so maybe (we pray) rather than this being a “breakdown” we will soon witness a “turn”. Has “the system” been rinsed out enough? Surly they have enough ammo left to “turn” the markets up. The timing certainly couldn’t be better for a short term, massive stock rally. Talk about getting all those sidelined dollars working again, counterfeit, printed and all! Let’s face it, it really would be the mother of all short squeezes and we could all have a Merry Christmas after all. Bernanke, Paulson and all the King’s men would be able to ride off rich , Bush would be a touch more tolerated, Obama would have a nice start and everything would be quite positive…until the dust settled and the reality of super hyperinflation began to surface for real. But who would care over the next 6 months or so. All the bad guys would be out of harms way by then. The global financial system would get a reprieve. The BRIC countries would thrive. Hey, let somebody else start a war.

Who cares of the Crimex defaults while gold and silver and their stocks take off like a rocket as all the “bad guys” happen to be positioned on side and make more billions. Paulson could go back to CALPERS, Goldman, JPM and a host of others and tell them to go gold. Who cares if gold rampages up if all the markets go nuts to the upside? Everybody wins! Talk about liquidity! All the talk about law suits and investigations would sure die down in a hurry…as long as the dollars start flowing. It wouldn’t surprise me if the US was able to buy (back) a heck of a lot of gold over the next several months given such a temporary wave of euphoria. Let’s see, say 7000 tons @ $1000/oz….hmmmm about $250 billion. Let’s double it…..$500 billion. Chump change with printed dough. There would probably be a lot of sellers for $1000 to $2000/oz. So then would be the time to talk about a new gold backed world currency system. This is all wishful thinking of course. A simple fantasy.

On the other hand, as Barbera puts it: “To be sure, for "the Shorts," the day has been theirs, and the bets have been pressed. The question as we see it, is can these institutions be allowed to succumb? In my view, the answer is probably not, and as a such I expect a staunch defense will be launched to save the "Too Big To Fail (TBTF)" institutions. Perhaps that defense began at the end of the day today. In my view for the aggressive shorts, the moment is now at hand to be awfully darn careful as this juncture is packed with explosive technical dynamite. As we see it, the technical condition of the large cap financial institutions is just about as oversold as it gets -- period. I believe the odds of a towering, mind bending "short-squeeze" proceeding in due course from here are building like the tremors on the side of a volcano, increasing palpably in intensity with each passing hour……

Of course, there are never any guarantees where markets are concerned. However, because this one really does appear to be 'make or break' for the system, it is hard to believe that the President's Working Group will be standing idly by, ignoring the implosion of recent days. In my view, if the financials can't stabilize, if they can't turn up from these ultra oversold extremes, then it will be "hell to pay" for the markets and stocks all over the world. This juncture has been shaping up for days now, as the crucial may be the last stand against deflation.”