The U.S. Stock Market: “Eject!, Buckaroo, Eject!”
The massive injections of liquidity from the Federal Reserve for the past five+ years–created by artificially low interest rates–have clearly come to an end. Cheap credit “fixes” are no longer available, and the credit junkie is going to experience withdrawal symptoms. Recently, news of the sub-prime debacle and teetering derivatives hedge funds have registered with investors–at least at the institutional level. Collectively, they have come to the realization that the party’s over. So it was no surprise that Wall Street prices declined 4.23 percent last week. I predict that this is just the beginning of a major bear market cycle …