In the last twenty minutes of Monday’s session, the stock market went into panic mode with both the Dow and the Transports breaking to new lows. I consider this bearish action a pessimistic forecast for the US economy. I’m sure the Fed took careful notice of this bearish market action and may now be wondering whether to terminate QE in October as promised, or to continue QE.
I was pleased and surprised by the action of gold yesterday, and assume that investors poured into gold as a safe oasis in a land where almost everything else is falling apart. Yesterday’s action did little to build up confidence in the US economy. I agree with John Williams of Shadow Statistics that the US is still caught in the claws of the Great Recession. Williams is of the opinion that the Great Recession never ended and that the US economy is continuing an ... Log in or subscribe to continue reading.