The market's tanking. We're at 12,600 and nerves are rattled. BofA is buying Countrywide for $4.1 billion, but the market isn't happy as it's less than the stock was trading for yesterday.

My prediction is that the market will be volitile, but will break 13K at some point in the not too distant future at which point I'll unload my last mutual fund. This year, the carnage will continue. BofA's purchase will be a disaster as they're taking on 1+ trillion (!!!) in loans serviced by Countrywide and sending their slimy CEO off with a $100+ million parachute. If I had to guess as to how low the market will go, I would say 8K. Recession is a foregone conclusion with the mortgage / subprime mess excacerbated locally by Hollywood's strike, and (most recently) California's proposed budget cuts.

I'm in the process of consolidating all my accounts by getting out of Etrade and WAMU (both companies which might be in bankruptcy soon) and into a brokerage account at ? where I will be buying muni bonds and T-bills... and maybe (bravely) shorting the market.