on bloomberg they are saying that inflation "unexpectedly quickened" to a 10 year high in the UK. meanwhile US cpi lower than forecast... "inflation will subside as the economy slows"... what is going on? one of the things that added pressure to the depression/crash of '29 was that the bank of england raised rates while the american economy was slowing. similarly valuations at that time were high as they are today. more importantly there are bubbles in the chinese exchanges, and since many of the top US corporations have exposure to china, their shares must be affected by any movement overseas.