The market wanted the FED to pause...and now that the pause is in effect everyone thinks a SLOWDOWN is coming...!
The drop in commodities seems a little fake... I doubt that the growing economies of China and India, etal....are really going to be taken down by a collapse in the US housing bubble...which is now proceeding apace.
Further, the notion of the Dow touching record highs...IN THIS ENVIRONMENT...has got to be giving some people time to reflect on what's really happening... And we are at the time of year when thoughts of 2007 come to the foreground and all the hype of last summer begins to seem a little old... And 2007 doesn't seem to be a banner year for investment all things considered.
And then there is the election uncertainty...the various and sundry "unwinnable" wars...and the beat goes on.
The real question should be how did the Dow get so high under these dismal prospects...and of course the answer is THE GREENSPAN HYPER-LIQUIDITY...which is still not out of the system...hence the near record highs for stocks...even as commodities and real estate start to feel the pinch of literally years of rate hikes...
