Asset values continue to deteriorate whether they be financial assets or commodities. This meltdown is putting pressure on corporate balance sheets worldwide, no doubt.
It’s a broad, double digit decline we’ve seen for stocks, real estate and commodities. Obviously, all this collateral value is disappearing, hence the bankers want more, or aren’t willing to lend. In fact mortgage rates have been going up, even in the face of the Fed lowering Fed Funds by 3.25%. This is just one example of the tension that is brewing again in the markets.
What does this mean for you and me?
We are due for another downleg. Get ready.
Oh, and The Fly will be free to curse up a storm at Dow 11,000.
Just like the good ol’ days.
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