When will they Ring the Bell

On debt..

Longtime readers of this blog know that my approach is as much philosophical as it is economics.

For me what is important at this point in the path this country has followed over the past 40 years and especially the past 4 years. Now I hope we see a return to real economics that puts speculative activity as secondary to real growth.

What does that mean at this point?

The macro indicators have made a maybe once in a lifetime turn on August 7th of this year. This turn will do a lot of things, Extraordinary P/E ‘s will decline as money moves to growth and away from speculation. What I see now is the last leg of speculation and that would be short side trades as the market moves into a reset basis. This will take time, probably a few years to turn it around.