Roubini Is Back, Baby

And we're all screwed.  Dow dropped 376 points today, down over 1000 since April 23.  It's starting to feel like October 2008 all over again, kids.  And that means it's Roubini time!

Stocks are likely to continue their aggressive decline and shed another 20 percent in value as the world economy weakens, economist Nouriel Roubini told CNBC.

As the market slides into correction territory, Roubini said weakness in euro zone countries and a slowdown in the US and other developed countries will make things even more difficult for investors in the months ahead.

"There are some parts of the global economy that are now at the risk of a double-dip recession," said Roubini, head of Roubini Global Economics. "From here on I see things getting worse."

Doot doot doot, been singing this particular song for quite a while now, folks.  In the short run, things are going to be really bad.  How bad?  Our old friend the LIBOR is back as is the VIX, and it just keeps building up.  Only this time, we can't cut rates anymore. What can we do?

I hear Helicopter Ben's Printing Press is nice this time of year.

The correction, soon to be crash, is here: the market had a bigger relative open to close move today than it did on May 6. We closed at the day's lows on massive volume, despite definitive central bank intervention, regardless whether it was the SNB, the ECB, or the Fed. The central planners have lost control of the market, and all thanks to the inevitable collapse of hyper capitalist Keynesianism coming out of the formerly most communist country in the world. A day of ironies. And it's not over. Futures are already down another 4 handles. The correction is coming, and it will be a bloodbath. The Fed can not push rates lower. It will print. It is inevitable. It is our destiny.

This is where things start to get real, real scary folks.  There's no more interest rate to cut.  The euro is disintegrating from Greek Fire.  The global shell game is running out of shell to look under, and somebody's going to figure out when there's only one shell left that the little red ball ain't there.  So what the hell do we do when there's no more rates to cut and a massive liquidity jolt is needed because the credit markets are tightening up like a vise?

Here there be dragons, guys.  This is the real crash helmet stuff here.  I've been warning about this this I started this mess, and now it's looking like the day of reckoning is nigh.

Assume the position.