A Near Catastrophe on the Western Front

In the early morning hour of Friday, October 24, 2008 the forces of the bear launched an all out assault against the West and its allies. It began with a ferocious artillery barrage on the Western alliance's front line positions. The amount of shells fired was unprecedented. High explosive shells, shrapnel and even munitions filled with poison gas rained onto the alliance's positions.

The enemy's infantry followed closely behind the advancing curtain of artillery shells. The first line, the Asian markets, fell without any sign of resistance. The second line, the European markets, was also unable to offer any resistance whatsoever to the bearish onslaught. At this time everything seemed hopeless. The long dreaded market crash seemed inevitable.

The third line, the US markets, was in the grip of naked terror long before the bearish enemy reached it. The S&P index futures locked limit down before the market opened. Then the enemy reached the line. Storm troopers quickly penetrated it by some 500 Dow points. At this desperate hour a miracle began to unfold

Resolute front-line commanders rallied their troops and organized a determined counter attack. By mid afternoon success seemed close at hand. The Americans had taken back about two thirds of the territory lost earlier in the day. But in the end it was not to be. Heavy machine-gun fire forced the Americans back. When the fighting ended at the end of the trading day, the American line had been pushed back 312 Dow points from the previous close.

A portion of the third line was occupied by Canadian force. The centre of the Canadian line was formed by the elite forces of the Royal Bay Street Infantry Brigade. It had taken heavy losses in the action of the preceding days and weeks. At the time the forces of the bear reached the Canadian lines nobody would have believed that this badly bruised brigade would carry the day and would become the last beacon of hope for the Western alliance.

Yet everything seemed hopeless at first. Enemy storm troopers pushed through and quickly took away 700 points from TSX Composite Index. But quickly the Bay Street boys took heart. They remembered the word of General Flaherty. He earlier voiced his opinion that Canada is well positioned to weather the global crisis.

The day before the brigade's young dynamic commander Brigadier General Mark Carney had declared the Canadian financial system sound. At this dire moment the Brigadier somehow manages to inspire his troops. Undaunted by heavy machine-gun fire they go over the top and counter attack. The advance is slow but steady until noon. They are pushed back a hundred points or so, but the consolidate their line and push ahead a yard by yard. By the end of trading they have almost reached the original line. They end the day with a small loss of 37 points.

Will their heroic deed inspire financial markets around the world to take back their losses from the forces of the bear? We shall see. Time will tell.