REALLY Bad News abound today.

Several pointers from conference call early am:

1. Counterparty is very concerned about UK banks. VERY as in thinking of not even having overnight line anymore with them. Everyone not in counterparty was literally stunned to hear about this because this story just wasn't there yesterday. What is happening here? Ominuous looking cloud. I would also like to hear more about Barclays should anybody know anything.

2. The other thing from repo desk, maybe minor but it sounds like it might have a lasting effect, is that the Fed paying interest on reserves, looks to me like banks might be sending cash the Fed's way instead of to each other. I am not sure if the effect is going to be minor, but even if it is, that is NOT positive.

3. Everyone is also not feeling well after American Express came out with their 8-k explaining how much money they have. This is NOT a positive story, in fact could be very negative in the near term.

I got out from several long positions with about $20 loss this morning. Yes, twenty bucks. I will sit this out in cash.

The first rule of war is to understand your enemy and at this point I have close to NONE. So there will be NO war today. In time this will be proven the right move.