Doug Noland - "King Dollar and the Peripheries"

``What could go wrong? Well, all analytical eyes should now be focused "at the margin." It is the nature of speculative Bubbles to create their own self-reinforcing liquidity. It's the inherent nature of Bubbles to "overshoot" -- the nature of speculative melt-ups to overwhelm markets right in the face of deteriorating fundamentals. I still see the end of QE as a pivotal development, although exuberance and speculative leveraging have continued to fuel the perception of limitless cheap liquidity. Stated differently, I believe the markets are at this point acutely vulnerable to any shift from risk embracement to risk aversion. The policy backdrop has ensured that markets remain excessively bullish in the face of bearish prospects. The various "Peripheries" would appear acutely vulnerable to a destabilizing reversal in market sentiment and flows. ''