There are a number of important questions stemming from this series of events.
The Fed is doing this right. Let me repeat... the Fed is not screwing this up.
I think we can demonstrate this painful process with one quick chart.
When things are going well it is always difficult to see an inflection point.
These people have no idea what is happening with the U.S. economy. It is that simple.
Only because of the incessant brainwashing of individuals by an industry with a bias toward indexing do we have this attitude that stocks are one and the same. They are anything but.
Markets are at risk of ongoing balance sheet and risk reduction, where both stocks and bonds do poorly.
If there is indeed a global credit crunch on the horizon, sovereign bonds are the only safe haven.
I think that one needs to take a diversified approach to not just wealth preservation, but the preservation of one's standard of living.
Bonds are an interesting trade right now.