The Last Thing The Fed Should Do

The last thing the Federal Reserve should do now is rescue the stock market or the economy by cutting interest rates. It's rate cuts of the past that have left both the stock market and the economy so vulnerable in the present. It's much better to swallow some very bitter tasting medicine.

Related trading instruments: SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ), SPDR Dow Jones Industrial Average ETF (DIA)

Stocks: Sell-Off or Crash?

CNBC anchor Andrew Ross Sorkin of CNBC just said there is no other word to describe the recent market plunge other than "sell-off." Let me introduce a new word into Andrew's vocabulary, "crash."

Related trading instruments: SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ), SPDR Dow Jones Industrial Average ETF (DIA)

The U.S. Economic "Recovery" Was Based On A Stock Market Bubble

The U.S. economic "recovery" was based on a stock market bubble. Once that bubble pops there is no way to avoid a severe recession. It does not matter why the bubble pops. All that matters is that it does. A stock market crash pulls the rug out from under an asset-based economy.