Capital Markets, Are The Enemy of the State.

Governments have tried to hold back the forces of a primary bear market.

The powers that be planned to do “whatever it took” to prevent the analogue from the five to six month bounce into April 1930 playing out to prevent an absolute loss of confidence.

But absolute power corrupts absolutely free markets.

In so doing, the market was stretched and the spring and elasticity has snapped.

It’s not nice to fool Mother Nature.

The bear has been made angry and is exacting his revenge.

Consequently, downside may be more swift and quicker that one could contemplate.

While the 2008 crisis unfolded like a slow-motion train wreck, the rule of alternation implies that this decline may start out like a train wreck, with a crescendo and climatic decline at the beginning of the leg down rather than a capitulation at the end.

A waterfall from the top rather than a climatic catharsis at the tail end.

And, you're correct: Crashes don’t occur off highs. But April wasn't a high, but a lower high in the larger scheme of things.

Below the "flash crash" lows, it won’t be a flash in the pan, and panic would prevail.

Note that the New York Composite Index has just violated its May 6 low.

Capitalism is fine until you run out of other people's debt.

Enemy of the sated? Enema of the state?

North Korea, Thailand,the tenfold heavier Icelandic sister volcano rumbling.

Mood makes the market.