SAY GOODBYE TO THE GOOD OLD DAYS

http://prudentbear.com/index.php/creditbubblebulletinview?art_id=10560

"Today, the speculator community must have one eye on the debt markets and the other on the currencies – with nervous glances back and forth to unstable equities, commodities and the emerging markets. And now that de-risking and de-leveraging have begun in earnest – and with losses accumulating rapidly – the fear will be of de-leveraging begetting liquidity issues and only more de-leveraging. And, of course, today’s dog-eat-dog environment ensures that operators will now seek to profit (by selling first/"front running") from those needing to sell – after a couple of years of seeking to profit (buying first) from those that needed to buy.

And there will be the issue of hedge fund redemptions, with the distinct possibility that industry fundamentals have recently taken a dramatic turn for the worse. And throw in the lingering problem with derivatives, ETFs and other instruments that create heightened risk of trend-reinforcing trading to the downside. Resulting uncertainty, tightened financial conditions and waning confidence portend economic disappointment – and the makings for burst Bubbles and bear markets. "




And some TOUGH LOVE
NEW YORK/SHANGHAI (Reuters) - China bluntly criticized the United States on Saturday one day after the superpower's credit rating was downgraded, saying the "good old days" of borrowing were over.