Starting the day off
Markets are down about 2% as I write this. Yesterday the market started realizing that in case of emergency, the Fed has only QEII at its disposal, but simultaneously realized that it can’t buy anything else. What to do? In a debt deflation cycle, all assets that were propped up by debt need to be deflated. Real estate is well on it way, but isn’t done, equities, and soon, debt itself.
The biggest surprise is the yen. It just keeps getting stronger. Is this unwinding across the world? Still? I don’t know, but the yen strength is one of the many disconnects in the market that make me anxious about the end game.
To be continued…
Last 5 posts by Yaron Sadan
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General | Yaron Sadan | 
August 11, 2010 8:47 am
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