I haven’t been writing much lately about Swaplogic. I guess I’m completely distracted by what is going on the the stock markets. Its unbelievable. “Too big to fail” is now a phrase being thrown around in a ubiquitous manner. Although, it seems that the truth is absolutely to the contrary. Looks like Citi, GM, and so on, are definitely big enough to fail.

The broad market is down around 50%. The VIX is trading around 80. Just take a look at the top 10 links on Bloomberg today.

Citigroup’s Pandit Says Bank Won’t Be Broken Up as Shares Tumble Below $4

Wal-Mart Unexpectedly Names Mike Duke Chief Executive, Replacing Lee Scott

Stocks in U.S. Fluctuate as Concern Over Citigroup Offsets Commodity Rally

Buffett’s Berkshire Was Asked by SEC in June for Data on Derivative Bets

Hedge-Fund Investor Manzke `Disgusted’ by Manager Fees, Withdrawal Limits

Treasuries at Record Low Yields Trigger Squeeze Concern in Futures Market

Cravath Slashes Lawyer Bonuses Up to 73%, Cites Client Hardships, Economy

Pelosi Rejects U.S. Carmaker Bankruptcies as `Digging a Hole Far Too Deep’

UAW Chief Says Union `At Bargaining Table’ to Help Automakers Seeking Aid

Things could not look more grim. Right about now, someone should be screaming for a bottom (at least in the equity markets), but I doubt anyone wants to take that big step right now.