Unwinding

So, the POTUS has gone on national television and described unspeakable (literally unspeakable) horrors that are going to come down the pike if we don't hand 700 billion to wall street but the american public (to their credit) are not buying it. In an election year, no less, only 7% of americans polled support the bailout. Oh, yea, congress is going to pass this and go face their constituents!

Of little note in the economic blogosphere (which, imho, has been very instrumental in rallying the public to scream, kick, yell and fight this within an inch of their lives) is this from bloomberg:

http://bloomberg.com/apps/news?pid=20601110&sid=a3PO453H_A58

Sept. 25 (Bloomberg) -- Credit-default swap dealers reduced outstanding contracts for the first time amid efforts to cut risk by cleaning up the derivatives market. The volume of trades in the worldwide market fell to $54.6 trillion from $62 trillion in the first half, the International Swaps and Derivatives Association said in a statement yesterday. It was the first decline since New York-based ISDA started surveying traders seven years ago.

That's a pretty big drop, suggesting to me that the POTUS may not have been talking to us, but them.