thats whats so amazing about the last few years. everythings so orchestrated and laid out there's never any suprises. earnings are always low balled to beat or at the worst come in line. the fed always telegraphs for months on end exactly what they're going to do.all ability of any world market to correct has been halted. i truely believe this constant interference in the market by all is what causes huge problems down the line
the one who carries the biggest stick on the block, determines if his shit is gold. right now the USA is feeding off its superpower status, but as the petro dollars fuel Russian modernization, another thug will be on the world scene seeking to challenge US domination of economic relationships. our standard of living is defacto based on the size of our military. The USA has been milking the post WW(world war) spheres of influence, as our living standards are financed by credit, on US asset valuations as determined by the order and transparency in our systems of government and economy. This ultimately determines US real estate/asset valuations. This order out of chaos in the world, the US as created, is invaluable, and the credit spending can outlast most of us. The dollar may depreciate, but the ones who hold our debt more and more, their currencies will depreciate even more. If you look across the globe, where would you want to live? latin america/south america?..... africa?.......... russia?............... south asia?............ 90% of the world lacks the degree of transparency that the USA has in financial dealings and political affairs. The more ordered and technologically advanced the infrastructure becomes in the USA in day to day living standards. The higher US assets will go in value. the carry trade will get more skewed as our debt rates skyrocket, to volker style thresholds. it portends a sideways market in equities with good size ranges, till another technological breakthrough blows our minds in day to day affairs similar to the internet did.
I think the big guy had already shifted its focus well before the market got to react on it. The question is who is going to hold on once someone's gold will soon become the bomb. Even in the event of market crash; there is still a need for orderly depressing the market; it is the best interest for everyone; and look back on the debacle of LTCM; Japan had to finance most of debts at lost in return to minimize the pressure on its currency.