More credit market turmoil

Here's a sampling of today's Bloomberg headlines (some of which I have links for, some I don't)

Goldman Says U.S. Economy Slipping Into Recession

Company Bond Risk Jumps to Record as Goldman Predicts Recession

Bank Bond Sales May Drop 12% as Demand Slumps, Citigroup Says

Washington Mutual Default Risk Soars to Record, CDS Show

Here's another one from the Financial Times:

25 CDOs to meet their maker; billions poised to liquidate

And don't forget these gems from yesterday in the commercial real estate world, either:

Fitch Seeks More Commercial Mortgage Bond Protection

Commercial Real Estate Weakens Along With Economy, Moody's Says

The bottom line: The credit markets are in a state of turmoil. Bond futures are flying (10s up a half-point, long bonds up 22/36) while interest rates are dropping even further (with the 2s yielding 2.66%, the lowest since late 2004)

Personally, things are getting ugly enough that I wouldn't be surprised to see a "surprise" interest rate cut from the Fed before the next scheduled meeting on January 29/30. If not, I figure we'll get a 50 basis point cut at the end of this month.