My concern has been the larger market. While oil stocks in a year or two may be seen as incredibly cheap at this price, the issue is how much more downside there might be.

Since the credit crisis surfaced 14 months ago, this past weekend has been perhaps the most critical in its unwinding. And George Soros says he believes we’re not half way there yet.

We’re sitting on close to a nominal $500 trillion US derivative market. Is it safe? Can it implode? How do you support or unwind something this big if you have to?

Central banks just threw another $180 billion in short-term liquidity into the marketplace to staunch the latest hemorrhage. The US Fed in particular must be running out of bullets.

At some point, I think they have only their helicopter fleet left. Then watch the price of oil.

On the other side, Kevin O’leary speaking on BNN, noted that while company stocks are down in price, most companies outside the financials have strong balance sheets. Donald Coxe notes potash is still selling for $1000 a ton if you can buy any, while the ag stocks have been trashed.

So the Fed has signaled it will do anything necessary to support markets. Commodity stocks are a screaming buy. Major financial institutions will survive whatever happens. There will be a stock market next year.

I just don’t know how much worse it can or will get before the sunrise on tomorrow. My fear is we are on the brink of something we have never seen before (how do you unwind $500 trillion?). Oh where is my security blanket!?!?