What a crazy day in the markets.  The rules are changing, and nobody seems to understand exactly what the rules are.  Just when you figure it out, they will certainly change on you again.  Capitalism is dead.  We are now a cross between socialism and communism.  Bernanke and Paulson just announced the largest government bailout in history, and sparked an enormous short squeeze market rally.  It’s way to early to determine the cost of this insanity on US taxpayers.   And whatever the new rules seem to be (more bans on short selling), they are sure to change again next week.

All of this uncertainty has managed to drive share prices higher, although it will likely only be temporary.  The markets seem to realize this, as evidenced by the huge BID/ASK spreads in virtually all of the option markets.  Take a look at the BID/ASK spreads below for the Russell 2000 October call contracts.  Anyone placing a MARKET order today on anything is practically begging the market makers to rip them off. Use limit orders, now more then ever!