Overnight, the Japanese government admitted – in a roundabout way – that the Japanese economy was back in recession. Germany reported this morning that order books for its industries, including its exporters, had shrunk significantly providing ample confirmation that the Eurozone is back in recession. In China, the housing bubble has burst although economic growth is still being reported.
Here in the US, the bond market is off and running as it smells trouble and commodity prices are sinking. Of course, the stock market continues blithely along believing that every other market is out of step. I suppose.