The US dollar borrowing rates climbed to their highest levels in over seven years, emphasizing banks' unwillingness to lend to one another.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for September 30.

Will Fed Chairman Ben Bernanke and Treasury Secretary Hank Paulson eventually be seen as heroes?

Now the Europeans are getting into the act; albeit only in a minor, supporting role.  It doesn't take a genius to see that there would be hell to pay.

The US dollar rocketed higher during the European trading session as European governments had to step in to rescue Belgium’s Fortis, the UK’s Bradford & Bingley, and Germany’s Hypo Real Estate Holding.  However, nearly every factor worked against the US dollar during the New York trading session.

The rejection of the $700B bailout plan by the House of Representatives came completely out of the left field, driving a knife through both US equities and the US dollar.

Equity markets around the world dropped the most since 1987 on speculation the U.S. Treasury will fail to restore investor’s confidence in the global banking system. Gains in the Japanese yen and losses in the stock market accelerated after the U.S. House of Representatives rejected a $700 billion plan to rescue the financial system.

Market direction is still uncertain for Monday. Congress has just finalized the bailout agreement, but investors will need to analyze the final plan before giving the stock market a lift.  Plus, there’s still worry that another major bank will go under, with Wachovia (WB) the odds-on favorite.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for September 29.

First and foremost, fundamental greenback traders' main concern in the days ahead will be the progress of the proposed bailout plan.