Saturday, August 31, 2013
DOW MEGAPHONE TOPPING PATTERN
This formation is still in play. The adjustment process and deleveraging from decades of credit bubble activity has been delayed by historic Fed actions, and now world CB's.
Delaying is not fixing.
"Fed QE notwithstanding, I believe the market backdrop today implies an important tightening of financial conditions going forward. Policy measures – including boosting QE – do have the potential to delay this tightening, although with the cost of only exacerbating the wide gulf that has developed between inflated global securities prices and deteriorating economic prospects."
Posted by Marc R at 4:32 AM