Is the global bubble in stocks, real estate, and bonds bursting ? I don't think we've seen the end of the downturn. There are just too many issues in play: China's property values falling and their large developers in default, higher energy costs, inflation, debt ceiling in limbo as Dems argue amongst themselves, consumer confidence down, etc, etc. It looks like the Dems could wind up with nothing and that the social spending will fail to pass if the progressives are able to force the infrastucture bill and the social spending bill to be linked. Surely they will increase the debt ceiling ... otherwise all hell breaks loose. I'll admit I was glad to see stocks take a big hit today. So, how far will the Fed allow stocks to drop before intervening ? Falling stocks make tapering less likely.
