Again, the elephant in the room, the Paulson, “Let’s give it to the American Taxpayer without lube,” plan is not included here.

First, let’s start with the continued deflation of the housing bubble, with home prices down 5.3% in July as compared to the previous year.

This one reason that retailers are forecasting an absolutely dismal holiday season.

It also appears that the Paulson plan, or at least whatever is making its way through Congress is not getting a vote of support from the bond market, with money still fleeing to treasuries, and the spreads between them and short term “safe” private debt remaining historically high.

It’s the same with the dollar, which is up a bit vs. yesterday’s bloodbath, but still weak.

Of more concern are indications that we are seeing a run on hedge funds.

In any case, oil prices are down a bit from yesterday’s hysteria, settling at $106.61/bbl, and retail gasoline is down again.