The distortions in the market are everywhere.  Greece is a zombie nation, Europe still has the drag of most if not all of the Southern countries.  China real estate appears to be next in line for a market correction. I just read an article that reports that listings have increased markedly since the market rout started.

I do not know if the Chinese government can plug the leak in that bubble, but I do know they will continue to try. I sense a panic there, and I do not mean in the markets, I mean the government.  It will be interesting to see if they can stem the selling tide.

I figured yesterday we would have a bounce, it may continue for some time, but I sense this time the market will eventually get the correction.  I just cannot see it continue to ignore all the ominous signs, they truly are all over and in plain sight for everyone to see.

Re Greece, it is a totally broken country.  One which had a lot of expense due to its social safety net, one which was supported by debt, not growth.  It is no coincidence they are in such bad shape, and it will get worse before it gets better.  Still an unsustainable situation.  The reforms have to address the lack of investment, lack of industry etc …

I am still 85% out of the market in my work 401K account, I will not put a dime back in until past the summer, probably in November, and then I am not sure what percentage.  I am still very heavily invested in my other accounts, with ALU representing a good percentage of the invested money there.  I am confident it is a good long term investment; I am willing to stomach the heavy volatility.

Article that mentions real estate listings increasing in China:

finance.yahoo.com/ne...9.html