The R Word

I'm thinking that this amazing snapback rally in the markets...that has given me such headaches lately...is about done.

The CEO of Countrywide Financial said the "R" word: recession.

No matter how much money Bernanke throws out of helicopters at this market, we cannot escape the realities of the business cycle. The Fed can distort and levitate markets, but the realities of business cycles will simply adapt to easy money and create more problems.

The Fed cannot let the US dollar crash...they've tried, but we're about at the end of that 6 year rope. They've opened the discount window, and they might even lower the target rate, but if they think that loose money cures all market ills, they've quite simply got another thing coming.

And if the crooks and salesmen get their clocks cleaned, I won't complain a bit.

I'll try to throw up a chart or two tomorrow, but for now it's time for bed.