by Calculated Risk on 6/26/2008 06:02:00 PM

From Bill Fleckenstein's Daily Rap today: It's About to Blow! (Here is Fleck's Site for the Daily Rap):

Note: excerpted with permission.

[About midday] I received a phone call from the Lord of the Dark Matter, who began the conversation: "It's about to blow!" He then repeated himself.

He went on to say that behind the scenes, many parts of the credit/mortgage market were "offered only." He said it had nothing to do with month-end or quarter-end. Instead, he believed it had to do with the enormous amount of inventory that would be looking for a home in the next quarter. He believed that the equity market was "miles behind what was occurring in the mortgage-backed/credit markets." Though he noted that he'd said it before, he repeated: "It's never been this bad."

And I heard confirmation from a bond shop today that "liquidity is getting worse and worse". Here we go again?