The primary reason why carry trades have thrived over the past few years is because volatility fell to a record low. The multi-decade highs that investors have grown accustomed to will be much more difficult to achieve as everyone becomes more careful with their investments.

Central banks are working together to forestall any sharp tightening in credit conditions that might lead to a downturn around the world. On Friday, the Dow rose 205 points. But what markets take away, the feds have a hard time replacing. This is the Battle Royale that Bill Bonner has been talking about. Inflation vs. Deflation; Markets vs. Market Manipulators.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for December 24.

Currency strategist Boris Schlossberg analyzes the major currencies for the week of December 24.

This week John Mauldin takes a brief look at the consumer, recent "shock and awe" central bank actions, money supply and more, trying to see how it all fits together.

Big financial stocks are down nearly 50%. Many of the derivative contracts they sold to others, and sold to themselves, were never ‘marked to market.’ Instead, they were ‘marked to model,’ mathematical models with deep, obvious flaws. Worse, many were ‘marked to make-believe’ in a way similar to subprime mortgages themselves.

The dollar’s slide came to a screeching halt. The question now is will the turn in the dollar last or will the weakness resume in the New Year.

Business sentiment in Japan is likely to falter in the fourth quater as a stronger yen hurts exporters, and a global credit crunch increases borrowing costs and damages prospects for growth worldwide.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for December 21.

Commodities reached a new high yesterday – another solid hit from the fist of inflation. Inflation reeled, and then delivered a jab – foreclosures rose 68% in November, and then another jab – home construction is at the lowest level in 16 years.