The major trends of spot gold and and 10-year T-note futures remain very much intact and dominant despite the recent weakness.

A depression destroys excessive debt. Businesses with too much debt go broke. Bonds that can’t be paid go into default. Households that have spent more than they could afford go broke.

The New York Times reports that the rich are defaulting on their mortgage loans faster than the poor.

Employment may no longer be just a lagging indicator but may also be predictive. It is an interesting insight, which we will explore as we take a very deep look at US employment.

Emotion is the last thing you want to rely on when you put on a trade.

The real reason people are unemployed is that the price of labor is too high. We're in a period of price and debt destruction. Output prices are going down. So, labor prices should be going down too.

What's the next target zone for the S&P?

A depression would wring the debt out of the economy.  It would get rid of weak businesses.  It would turn spendthrift households into savers.  That’s got to be worth something.

The correction is doing its work.  The feds tried to stop it with trillions in loans, guarantees, and stimulus spending.  They failed.

Governments can't make bad debt go away, so they can't prevent a correction and a de-leveraging.