Financial stocks fell and the dollar weakened on concern President Barack Obama’s plan to rein in banks will dent U.S. earnings. Emerging-market shares dropped for a third day on speculation China will raise interest rates.
The continued unwinding of leverage means that relying on real growth is out of the question. The illusion of wealth through devaluation and fictitious FASB asset valuations have been driving this so called recovery. Any strategy, regardless of the nature of its intentions, that disturbs the illusion will be quickly discarded. The potential for another Waterfall in assets remains real under the forces of a depressionary debt liquidation cycle.
Source: bloomberg.com
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