Good observations. The current market volatility is all about currencies and the reasonable concern that Eurozone politics/economics are falling apart . They really did need to let Greece go bankrupt. The entitlement societies of southern Europe see this as one big game. Germany and France cannot in fact afford to subsidize large economies where much activity is off-book.

Unfortunately, the good earnings being experienced by CLF and others can vaporize if the Euro collapses , putting more supply of iron/steel/coal/oil back into the world market at a time the US domestic (main street) economy is struggling. Pricing power for commods all takes place at the margin, so both US and China would like to see short term hard brakes on world demand . Just long enough to destroy any pricing momentum. It does not matter what you and I think, but the majors may well be taking a time out considering headwinds from the Euro, US complicity, and the Aussie supertax. Cheaper commods and higher USD clearly imply an extended US recession, but that is where my compass needle is pointing right now. Everyone expects CLF to get taken out, but it will not likely happen while Europe is melting down.