By Robert Denner
Well it came one day later than I was expecting, but it seems to be upon us now. I said last Thursday that we’d end the week up 75 or so (turned out to be 65) and that this week we would enter a period of possibly severe weakness in the markets.
It seems to be gathering steam this afternoon. I will hit the highlights as they are getting alarming, but still far from panic time.
By Robert Denner
Been trying to come up with a good analogy that better describes what is happening around us, something better than the age old frog in boiling water routine; because what is happening to us is so much more insidious and sly. I was watching a discovery channel special a few years ago regarding how elephants are rounded up and eventually trained to be domesticated draft animals in Africa.
John P. Hussman, Ph.D.
A week ago, the Federal Reserve initiated a new program of "quantitative easing" (QE), with the Fed purchasing U.S. Treasury securities and paying for those securities by creating billions of dollars in new monetary base. Treasury bond prices surged on the action. With the U.S. economy predictably weakening, this second round of quantitative easing appears likely to continue. Unfortunately, the unintended side effect of this policy shift is likely to be an abrupt collapse in the foreign exchange value of the U.S. dollar. Click here for rest of the article.
