The debasing of the US currency has begun. If interest rates break higher, the dollar, stocks, bonds will all be toast.

why would stocks go lower

higher interest rates means lower p/e

Correct.

The bigger problem is that margins have been "pushed" by gaming currency spreads and delivery schedules. THey are at postwar highs - and we know what happens when oscillators go to one extreme, right?

Add together higher REAL interest rates and margin compression and tell me what happens to stock prices.

Stocks ex-financials are going to book value.... Financials are going to .5 book value(those that don't go under).

I would love to see NAZ down 50 tomorrow. That should bring some sense into these people that are pilling into momo stocks. I'm sick and tired of pumpers, it is time they paid the pipper.

Anybody that is paying attention to the Goldman 10K has to see that their quarter was mark to make believe bull****. I am telling you guys the banks are in trouble here over the next few years. The residential and commercial exposure in the banking system is enormous. I have seen something like 60-70% of assets. That is only on balance sheet- off balance sheet recourse has to be added in as well. I have been e-mailing any blogger that has ties to the mainstream media to try and get this issue raised. KD is right about the 23A exemption and the potential danger....

I'm was toying with comparison charts of total housing valuations vs total bank losses to date this year. Maybe chart total market cap of banks and show the decline.

A break down with expected and real numbers of foreclosures in dollars, compare that with in the debt/balance growth of banks as the money moves out of the shadows and on to the books.

I'm thinking it will clearly prove that banks leveraged losses will dwarf the total losses of consumers. Of course, all are hurt.

Bonds and stocks usually trade in opposite directions, no? When stocks are down, investors pile into treasuries. Maybe you're confused since yields are DOWN, but that means bond prices are UP.

http://www.profitquotes.com/commodities-....