I have a couple of points here. The first is that the I'm often concerned that the population at large isn't really aware of what's coming, and it's nice to know that we're not alone in thinking of this. Tyler Durden, over at Zero Hedge reports that there have been 30 consecutive weeks of equity fund out-flows from the market. It's encouraging to see people doing this to protect themselves from too much exposure to stocks. Individual investors are shifting away from stocks. (chart from Zero Hedge)
is going to give more money to bail out the EU. We have been bailing out the EU since 2008. Again, thanks to Tyler at Zero Hedge:
One may be forgiven to believe that via its FX liquidity swap lines the Fed only bailed out foreign Central Banks, which in turn took the money and funded their own banks. It turns out that is only half the story: we now know the Fed also acted in a secondary bail out capacity, providing over $350 billion in short term funding exclusively to 35 foreign banks, of which the biggest beneficiaries were UBS, Dexia and BNP. Since the funding provided was in the form of ultra-short maturity commercial paper it was essentially equivalent to cash funding. In other words, between October 27, 2008 and August 6, 2009, the Fed spent $350 billion in taxpayer funds to save 35 foreign banks. And here people are wondering if the Fed will ever allow stocks to drop: it is now more than obvious that with all banks leveraging the equity exposure to the point where a market decline would likely start a Lehman-type domino, there is no way that the Brian Sack-led team of traders will allow stocks to drop ever... Until such time nature reasserts itself, the market collapses without GETCO or the PPT being able to catch it, and the Fed is finally wiped out in one way or another.
Finally, on how well known this all is, the Lovely Secretary of the Homeland, Mrs. Graybeard recently placed an online order with one of the providers of long term storage food items, and got this response (in part):
With the announcement of QE2 on November 3rd, many of our customers became concerned about inflation in commodities prices, in particular food. As a result, we have experienced an unprecedented increase in sales that has continued until now. Because of this, many of our vendors have had a difficult time keeping up with the industry wide demand, especially for canned food storage.So, yes, a lot of our neighbors seem to be waking up and bracing themselves for the storm that is coming onshore.