VIX shot up higher. The Dollar chopped around and closed exactly where it had been last night. Bitcoin continues to get sold, and is on the kind of support I call the threshold of the House of Pain.

We discuss the growing fragility beneath today’s markets: from the AI mania and shadow-banking risks in private credit to the K-shaped economy and rising pressure on both households and asset prices.

With mortgage rates tumbling, housing market participants have been disappointed by the lack of enthusiasm by homebuyers to apply for mortgages.