Looks like the US Fed is letting the markets slide, unlike last time when they pumped it back up.
Their balance sheet reflects what they did.
How far will the Fed let the markets slide and how fast will they let it happen before they start QE4 and pump the markets back up?
US economic news has been nothing but bad and the next revision will probably be worse, rates are rising without the Fed raising. Housing figures looking worse, car sales looking worse, the list goes on.
Some of China's biggest property corporations have been taken over by the state to stop them collapsing. They have big holdings in the US.
Similar things are occurring in Australia with our housing markets and given the debt involved we could end up with the same problem. Australia's eggs are pretty much in one basket the China resources basket. That to me is a scary thought.
