A quick glance at the world stock exchanges shows a “red board,” stock prices are down in every market listed.

All this reminds me of 1931 – just before the bottom fell out of the American economy. Or of Argentina’s default, when the SHTF big time.

There’s lots of jawbone, but most of it is wrong. Yesterday the wire services reported consumer spending was up in May. A look at the numbers shows that except for a couple of carefully selected items, consumer spending was down across the board.

There’s more news, but it’s all bad. Reef the sails and batten the hatches. We are in for rough weather.


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