I must say, watching the market action this morning, that it is remarkable (which would be why I’m remarking on it) how little concern people have about the ongoing disintegration of the financial system. Over the weekend, the second largest mortgage lender (Indymac) was taken over by the FDIC, and the government nationalized mortgage lending for all practical purposes. Somehow, this is seen as a good thing for investors. I suppose it is a de jure recognition of a situation that has existed de facto ever since the collapse of the mortgage securitization market, but even so I hardly think that it is a cause for optimism. I could understand a buying spree if the market had priced in a collapse of mortgage lending, but that it clearly not the case.

Apple did good business with the 3G iPhone, apparently, so people still have money for toys. One wonders for how much longer.

In another sad echo of the past, the SEC is starting a witch-hunt in order to eliminate bearish rumors. Any and all bullish false statements are OK, of course.