The U.S. economy is grinding so painfully and haltingly toward recovery that the Federal Reserve looks poised to incrementally strengthen the dosage to keep growth on track.

Weak economic reports from China ignited a sell-off in the equity markets on Wednesday but the embers were burning well ahead of the release of reports showing a decline in Chinese industrial output and weak retail sales.

Flight-to-safety buying is driving June Treasury Bonds sharply higher. Thursday trading action took out the recent high at 124’16. Upside momentum seemed to be indicating that another surge was likely. The move in the T-Bonds looks more reactionary than speculative with investors taking their cues from the falling equity markets.

I guess even if you were proven correct about your concerns over the problems with the housing market and then vindicated about your concerns over the credit boom you can still not be accorded any respect from the mainstream media. Yesterday, I was vilified for not getting my mind right in believing the economic recovery has arrived