So, imagine this: The Europeans are contemplating buying all the short-term paper from all the European countries, or something similar.

The WSJ has “speculated” that assorted Fed-Heads are contemplating an open-ended QE that continues in perpetuity or until the economy posts solid growth again.

Asian markets began to respond to the obvious worldwide economic slowdown with lower prices until the “hope” of more stimulus came to the rescue and sent markets higher.

Most companies have warned of a slowdown through next year yet the new trillion dollar triumvirate is in charge (AAPL, GOOG, AMZN) and holding up the market.

Everyone is bearish because of economics but in reality everyone is bullish because the American market is at three year highs. Everyone is participating in the market because they “just follow price” and will be able to liquidate at the drop of a hat.

Central banks want to pump inflation at all costs. Soon the supply of materials will be overwhelming yet prices of everything needed will be at record highs.  I just cannot imagine the deflationary forces at work that must be counteracted!

It is the beginning of the Democratic convention, and unlike the “full of shit” Republicans, we will enjoy some “delusional” presentations to remind us that “Obama is the Magic President that has made the stock market double”over these last few years.

Are market prices real? Are they sustainable or are they just a mechanism for Policy that allows the government to fund its deficit spending? Is there a real danger of prices falling out of bed or is the market “fully controlled”?

My belief, taking fundamentals, technicals & sentiment into account lead me to conclude that there is very high risk in markets. How or when I cannot say. But a quick thousand points just before or just after the election is not out of the question.