Finally a little action

Markets finally broke. Not on huge volume, but a decent move. Range bound at the moment waiting until the feds minutes comeout.

The fed seems like its a difficult position. The housing market is in a recession even though we still haven't seen all the inventory come onto the market. That is certainly going to pressure consumers who are overleveraged. However, there is still tons of cheap money around the world reducing risk premiums to almost zero. Jim Cramer noted this morning how there really isnt a ryhme or reason for anything. Good companies, bad companies, it doesnt matter.

The bond market has lost any ability to self regulate credit and that should be really unnerving to people, but everyone is too busy trying to get rich in easiest credit ever available. How does this end? No one knows. In fact the whole system has balloned to the point that no one knows who is on the hook for anything if it does. Twenty years of declining rates and moral hazard has unleashed global credit systems and if you ask anyone they dont have the bad credit or its hedged away. right. right.