Is this it? Are we seeing signs that after a very long period of Fed inspired insanity, et al. (courtesy of folks who lack any imagination beyond sustaining the unsustainable), are we finally entering a long-awaited financial correction?
Using our ‘outside in’ methodology, there’s lots to suggest we are entering such a phase.
All is not well on the periphery, with weaker economies now flashing serious warning signs in their bond and currency markets. It's enough that it’s time to consider that perhaps, maybe, we’re getting set to enter the next phase of things.
And by that, I mean a meaningful contraction in global liquidity that makes its way to the core, touching off a correction in an overly inflated set of asset markets.
Recent Warning Signs
Here are three serious cases to consider: one in Turkey, one in Venezuela, and one in Argentina.
Turkey
Turkey Intervenes to Halt Lira Slide
Jan 23, 2014
ISTANBUL—Turkey's central bank intervened directly in the currencies markets Thursday for the first time in two years in an effort to slow the lira's free fall.
Policy makers in Ankara started selling dollars as the lira hit a record low of 2.2973 against the dollar before noon local time, and slumped to an all-time nadir of 3.1342 against the euro, said three traders familiar with the transaction. The lira bounced back somewhat in response, but didn't immediately recoup all the day's losses. The lira was trading at 2.2740 against the dollar and 3.10 against the euro midafternoon in Europe.
by lesphelps 
