Probably the Most Important Read of the Year
As all of you readers know, the QE2 experiment is to me an experiment that will not end up well. This weeks letter by John Mauldin features an “Outside the Box” column by Dr John Hussman titled “Charles Plosser and the 50% Contraction in the Fed’s Balance Sheet”. To me Dr Hussman is one of the best analysts and fund managers in the business. He has the numbers to back up his comments. Both John Mauldin and John Hussman links are in our links section.
Yesterday the Flash Crash indicator was triggered on the S&P and the Nasdaq. The Dow has yet to trigger. If past results are any indication, a big downside move will occur within the next five trading days.