Zeev's Turnips Patch-No Politics (ZEEV)

[federal reserves]

Question -- "Richard Russell, why do you think the coming panic will be so severe?

Answer -- Ironically, the reason I believe it will be so severe is that it has been preceded by the largest load of misplaced bullishness, across-the-board denial, trash talk, and Wall Street baloney, that I have ever seen. It has been preceded by weeks and months of misguided optimism and ignorance concerning the meaning of the primary bear trend.

Instead of recognizing that this is a bear market and therefore preparing for major trouble, the US government has been spending its head off, states and cities have been running up huge deficits, business has loaded up on debt, and consumers have been buying as if a bull market is just starting.

All of this lays the groundwork for shock, surprise and horrendous losses. Frankly, I can't remember a situation like this in the half century that I've been watching markets.."