Bubble is Leaking
And that is a problem. A leaking bubble, one based on reduced economic activity, leaves a mess that is difficult to clean-up, it just kind of drapes over everything.
If on the other hand, the FED would have acted earlier by cutting Bond buying and increasing interest rates, we had the potential of seeing the Bubble burst and the pieces blow away.
At the moment the fact that our readers have their positions in a defensive posture, we all just watch the complexity unfold. We may still see the embedded inflation factors cause the remaining part of the bubble burst. Most importantly the Bubble is still intact, so this all remains early stage economic reaction.