Ramblings

This market seems to be acting badly this few days. Reasons
(1) Ben Bernanke said he said the Fed will be on heightened alert against inflation dangers, especially any signs that investors, consumers and businesses think prices will keep going up and change their behavior in ways that will aggravate inflation.
(2) China tightened lending. 7+% drop on day of announcement

I believe we are in a period of credit tightening which in turn cause business to slow down and reduced inflation in 2008.

As such, this environment will be bad for almost all asset class. CASH will be king.