A quick update from the Catskills.
Anyone reading this blog for the last month, should not be surprised by stock sell off this week.
Global economic growth is cratering as we enter the currency wars of devaluing their currencies in the hopes of spurring growth through cheaper money.
These actions — of course — hurt the people using the currencies by reducing their buying power.
A 10 percent move down from stock’s June highs should be expected and 20 percent is not out of hand.
While Wall St. loves the idea of no September rate rise — another prediction from January that will come true — the reason behind kicking the can down the road, deflation/recession, scares the Street and Fed even more than a rate rise.
Look at crude prices heading to $39 a barrel for US WTI, falling off the cliff — due to little economic growth — as the canary in the oil pits for recessionary woes.