Watch the markets

Awhile back, about the beginning of the year, I thought I'd prove myself with a prediction about the markets.  I figured we had reached a high water mark that wouldn't be breached again.  In fact, I figured we may see a new bear market.  Alas, it didn't turn out that way.

But the last week hasn't been kind to the market, so maybe I was just a little premature.

It should be noted that this market weakness is coinciding with the taper.  If the market does prove to be as fragile as I think it is, then the market's behavior will have demonstrated that the only thing holding it up is the QE.  Well, QE cannot last forever, dependence upon it or not.  All good things must come to an end.

But an outright collapse in the markets may not be in the cards.  It was described as such on certain places that I don't recall at the moment.  Collapse means collapse.  A seven percent drop is not a collapse.

The Russian bear still seems hungry and hasn't gotten its fill.  This is destroying Obama's credibility.  You can't make "warnings" if you haven't got the wherewithal to back it up.  You cannot destroy the nation's capability to wage war and then turn around and threaten war and expect to have any credibility.  His warnings will most likely not be heeded because there's no reason to heed them.  So, this is not likely to be good for the markets either.  It sort of destroys the notion of growth through international trade---aka globalism.  If there's a significant threat to the dollar as reserve currency, then watch out below!

The American public may regret its foolishness in making this man its President.  This little dog and pony show may be over soon.