Poor Freddie (FRE). The federally-chartered lender announced a loss of nearly $5 billion. Sister Fannie (FNM) didn’t get away either. Her shares went down 22%. When you lend out money recklessly, you gotta expect trouble.

Sharp moves in the bond market indicate that investors are rushing into inflation-protected assets that carry no credit risk because their concerns about the US economy are growing. The prospect of more difficult times ahead has traders pricing in a 100 percent chance of a quarter point rate cut next month.

Government bonds have rocketed higher while the Japanese yen currency crosses have tumbled, making it very clear that risk aversion remains the primary driver of the markets and that lower volumes will only exacerbate large moves.

Today, Price Headley shows traders how to absorb as much information as possible quickly and how to avoid bad information.

Thanks to a mixture of good luck and bad management, the United States was able to heat up the entire world economy. But now, it’s in hot water itself. Americans are up to their necks in boiling debt while Wall Street has its vaults stuffed with the kind of debt that sets off Geiger counters.

There are well-warranted concerns that global inflation will rise significantly, and the prospect of increased price pressures only compounds the problems that the BOE already faces as they contend with uncertainty surrounding the ongoing reappraisal of risk in the financial markets.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for November 20.

Private firms bought companies from the public, pimped them up, loaded them down with debt, and sold them back to the very same public market investors.

The US dollar is up across the board but that strength is more of a reflection of rising risk aversion than a rosier outlook for the US economy.