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A genuine selling panic

If genuine mass panic signals a bottom in equity prices, then this is shaping up to be a great buying opportunity. The Vix index has only been higher twice in history: during the peak of the Lehman crisis/financial panic in Oct. '08, and during the great market crash of Oct. '87. The combination of a very high Vix (panic) and a very low Treasury yield (recession/depression fears) has only been worse during the Lehman/financial crisis. This might not be the exact bottom, but we must be getting pretty close.

Adding to the panic, I believe, is the perception that the White House is clueless. Obama's speech earlier today was abysmal. Once again he blamed Republicans and the rich for refusing to cooperate. Once again he insisted that the way to fix things is to extend unemployment benefits, extend the payroll tax cut, and build more infrastructure. These things have been tried and they have failed miserably. Is there no one Obama trusts who can better advise him on how to get out of this mess?

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