My day started at 5am and it is now 9:45pm. My bed calls.

When I got up this morning the US market was still open. (Closes at 6am WA time) It was interesting that there was quite a difference between the Cash and the Futures movement.  The cash on the S&P500 was down 9.48 points but the futures was only down 0.1. However both the cash and futures finished at 779.  Not lower than the november lows but getting close.  Tonight however with just over an hour before the market opens the futures are trading at 765 or down 14.  This is a big move. However a lot can happen while I sleep.

I read an interesting bit on Bloomberg today. The writer of the article was saying that “as many as 50% of companies owned by private-equity firms may default by 2011″  Remember the frenzie of buy-outs. Private equity jumped in boots an all, paying, in most cases, far too much, leveraged too much, and now these good buys are not performing as predicted. Who could have forseen the current crises they wail.  Cerberus bought Chrysler.  Then there are all the others too numerous to mention.

The problem with leverage is that when it working for you all is well, but working against you it is painful to say the least.

Leverage is the topic for a whole blog when I’m not so tired.