We're in a Bear Market

I suggested last night that those who believe a Fed interest rate cut will be a cure-all are mistaken. The problem in the current cycle is that nonbank financial entities (hedge funds, mortgage companies, Wall Street derivative players, etc.) have taken a greater role in the economy and have bypassed Regulation T requirements and banking reserve requirements. And those entities have been on steroids, raising leverage to levels never seen before.

Finally, I opined that we have entered a bear market and that any rally, particularly a violent one on the anticipated Fed cut, should be used to sell positions and to short.

Here are a couple more video clips from last night's "Kudlow & Company."