QuoteOriginally posted by: blueraincapwhen the economic indicators are up, market cheers for a recovery and rallies. when they are down, the market speculates additional stimulus (or delay of withdrawal) and rallies. what can cause the market down?Human error, and random events. There is a construction site near me. Every day a bunch of guys show up in trucks, and the building gets taller. It is not supposed to ever get shorter.

QuoteOriginally posted by: Traden4AlphaQuoteOriginally posted by: blueraincapwhen the economic indicators are up, market cheers for a recovery and rallies. when they are down, the market speculates additional stimulus (or delay of withdrawal) and rallies. what can cause the market down?1. The world runs out of people willing to lend NN trillion to Western governments2. Inflation3. Asset bubble++1. or trees for additional paper printing at the central bank?2. financial economy -->real economy transmission takes a long time3. hard to justify a bubble anymore in this nonconventional money printing world. if anything, the govnt bond market is the biggest bubble or suddenly with the discovery of QE and lack of inflation, the market can only go up?

the only way the market can correct would be the fed going bust. its holdings are significantly under water and equity wiped out if its assets are marked to market. who is gonna rescue the fed when it fails.

QuoteOriginally posted by: blueraincapthe only way the market can correct would be the fed going bust. its holdings are significantly under water and equity wiped out if its assets are marked to market. who is gonna rescue the fed when it fails.hmmm, who rescued Germany when it went bust in the 1930's?