The Federal Reserve System has a tiger by the tail. It has inflated the money supply to keep the 2001 recession and 9/11 from becoming Great Depression 2. Now it is trying to unwind the real estate bubble that its policies created.

Investors face the prospect of popping bubbles: a continuation of the stock market's slide, the appearance of a new recession, and the refusal of Asian central banks to buy any more T-bills.

If you are thinking of shorting this stock market, here are my suggestions.

You had better monitor the FED on a regular basis. That's why I provide links to several important Federal Reserve charts in my FREE MATERIALS category.

You can come here for further analysis if you're a member.

For a very good introduction to Federal Reserve policy, click here.

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