I have said for a number of weeks that the general stock market topped out in August. The charts of the major averages all show H&S top formations. There are a litany of both domestic and international problems that are affecting the global economy. (think China’s real estate implosion, supply chain issues, runaway inflation, just to name a few) The linked article below, outlines the similarities of financing for stock speculation provided by the banking system compared to the 1920’s and today the values and levels are considerably worse. Anyone believing this is going to be a correction or just a pause in the bullmarket, is smoking some pretty good stuff. I was expecting a multiple year bear market. This is going to make the 1930’s look like a picnic.

The U.S. Banking System Is More Dangerous Today than in 1929, Thanks to the Fed’s Reg U and Swaps – Two Well-Kept Secrets from the Senate Banking Committee