DURING THESE IRRATIONAL PERIODS IT'S BEST NOT TO TRY TO "EXPLAIN" THINGS...
THERE SIMPLY IS NO REASONABLE EXPLANATION...
THIS MARKET NEEDS TO REST...THE RATE CUT FRENZY WAS WAY OVER DONE...AND IN FACT, MAY HAVE BEEN A MISTAKE BY THE FED... THE NOTION THAT FLOODING THE MARKET WITH LIQUIDITY IS THE CURE FOR EVERY PROBLEM IS COMPLETELY FALSE... THERE ARE ALWAYS CONSQUENCES...EVEN FOR THE US ....
PRESENTLY AS LONG AS THE WORLD ECONOMY IS WILLING TO SUPPORT THE AMERICAN NOTION THAT THE US IS OUTSIDE THE RULES OF MACROECONOMICS...EVERYTHING WILL WORK OUT...
AT SOME POINT THE IRRATIONAL NATURE OF THE US ECONOMY WILL CAUSE INVESTORS TO DEPART...AND THOSE LEFT HOLDING THE BAG WILL BE THE BIG LOSERS...
