Since all hell broke loose last fall, February marks the third month that everything went down. September and October 2008 were across-the-board losers, and so was last month. The only thing that gained, by a thread, was cash, based on 3-month T-bills, as our chart below shows.
The deep pain now coursing through the capital and commodity markets needs no explanation at this point. The global recession strangling the planet inspires only selling, hoarding cash and otherwise retreating from debt in any way, shape or form possible. This is a toxic combination and one that explains the various economic ills that are likely to roll on. The unwinding is also necessary to cure the problems that afflict the global economy, but no one expects the process to be pretty or speedy.