I’ve got it here:

This market is like watching an extremely stupid person come into slow realization of some very simple fact.

Indeed. The stock market is well behind the news and is probably bound for a nasty hangover. What we have:

  1. Dollar is at the record low level it was only once before – in 1992, 15 years ago. If it break it down it will be very, very nasty
  2. Long term treasuries are collapsing. When dollar and treasuries are collapsing together it’s very bad
  3. Commercial paper fell another $48 billion. The total decline is 14.5%, comparing with a total 22% decline during the last recession

I will still defend Bernanke for what he did. Facing the choice between a very bad recession and a horrible recession he chose a very bad recession. I think he’s right. But prepare for something very bad.

Let’s play “mark my word” game. I know it’s not very smart to do so, but I predict that at certain point within the next 60 days the stock market will be at least 10% lower then now