Am I the only person out there that thinks this slide is about 90% bullshit? Is this not a reverse bubble? Will anyone out there stand up and tell me there are not Hedge Funds and other large pools of cash making big dough selling the market short?
I have big concerns, but I am optimistic. The index to watch now is the Ted Spread, see the link the below. For those of you not in the know, this is the difference between the rate banks will lend to each other and the rate they can borrow from the U.S. government.
Ted Spread on Bloomberg
Watch this thing, right now, its WAY OUT OF WACK. Until it straightens out, we will continue to have major major bad stuff happening. When the spread starts to level off and better yet narrow, look out here comes the big rally and hopefully you can be a part of it.
P.S. I am going on record here as a proponent of financial industry regulation. I think anyone who works or has worked in financial services knows (whether or not they will admit it) regulation is a necessary tool that serves the public interest.
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