The US equity markets were weak most of the day, and sold off into the close. This *might* be end of year selling, taking profits and losses, dressing up the portfolio, and raising some cash for a run at the year end. Oil continued breaking lower. It is a mix of supply and demand, more supply but at higher prices, and weakening demand. So, is this good for the economy? Well, yes, unless the demand spiral keeps going lower. I am not sure how much lower energy prices will help, given how broken the real economy has gotten. The deal in Washington over the budget is clouding things a bit. The House passed a spending bill that was stuff with some goodies for the moneyed interests, including a section about shifting derivatives risks to the public that was written by Citigroup. Liz Warren through a Baby Ruth in the pool by publicly challenging this rotten deal, and taking on her own party leadership and the White House in the process. Those who said she ought not to run for office, and if she ran she could not get anything done, are completely off base. Whether she stops this bill or not, she has just made a big splash in Washington politics, and taken on the Wall Street Wing of the Democratic party, headed by the Clintons. Next week we have an FOMC meeting. We are getting very close to a bottom in this selling *unless something happens.* Have a pleasant weekend.
