You need to do a 180 bro, the global economy is supported by the US consumer. They make a cheap product, we buy it on credit, they take the dollars and loan them back to us so we can buy more. It is a vicious cycle that cannot be perpetual. -so I can work longer, so I can make more money, so I can buy more coke, so I can work longer, so I can make more money, so I can buy more coke...... Remember, they have exported their savings to us to spend. When we start defaulting on debt, they lose $$ too!
Agree, I'm holding back on increasing the shorts at least until the next Fed/Paulson spasm. Just keep reminding myself there will be more than enough downside to justify staying sidelined until both a clear downtrend and the Fed can't jack the markets back up with a cut.
So we have had the 25BP cut that did nothing. Should we short now or wait until the 100BP cut between FOMC meetings? What other ammunition does Fed/Paulson have? None it seems. Fed shot it's load and nothing happened. Oh yeah, and it seems I-Banks balance sheets are you know, kinda a little bit worse than they said the were and yeah well, Fed Pumped in $41Bn for some reason.