The support level that was holding up the market was taken out over the last few days. QE is now a necessity. What is Bernanke waiting for? The system is crashing. They need QE now, or else yield turns negative.
Well, I guess people with money are now buying at fire sale prices, but if they wait to long, then GDP turns negative and it will be well known that Bernanke's policy does not work. That is the point when people would turn on the system, when then people figure out the big lie of fiat "money". It is now a fine line between what would be a fiscal stimulus that could trigger hyperinflation (if the world all spend dollars at once) and a deflation that will turn return hugely negative.
Bernanke and Co. have two weeks to issue a new fiscal stimulus. If not, then stocks continue to crash (hello FNSR/RIMM/etc), while the fiat "money" flounders about, and precious metals and oil remain at a premium. Imagine DXY 77 while the Dow is at 2k, while gold is at 2k. Yes, this is a realistic scenario. The problem is, pensions, including the SSTF (Social Security), turn negative, and then the system will continue eating itself. This is why Bernanke must print money, and monetize the debt like there is no tomorrow. The problem with that is it will spur hyperinflation. We are now one week away from deciding if it will be hyperinflation, or deflation beyond deflation.
Austin-Fitts today said the Grovers will decide QE. If the Grovers think they can wait that long, the are not only insane but stupid. Yet there is a line from there main play that always comes to mind when I think about economic collapse. It is, "Here in the Grove we are safe from care". They may know the system will crash next month, and wish to be away from their cares, in the midst of the redwoods, in the safety of nature.