Kass: Market Turmoil Will Be a Constant

This blog post originally appeared on RealMoney Silver on Aug. 30 at 7:47 a.m. EDT.

If you've liked the recent up-and-down market, you're gonna love what's coming up -- this volatility is going to be with us for awhile.

Wednesday's wild market swing underscores the volatile scenario I have envisioned and continue to anticipate, and even if an imminent cut in the fed funds rate is upon us, it will not cure the systemic risks associated with too much debt, irresponsible ratings agencies, too little regulation in the derivative markets, hedge fund marking to model (not to market) and too much optimism regarding corporate profits.

I expect the wind-down of excessive credit creation to dominate the investment scene over the balance of the year, contributing to continued volatility and to trendless and lumpy market conditions. (On CNBC on Wednesday, Vanguard's John Bogle called it "unprecedented" in the 50 years he has been in the investment business.) ...