Timid FED action stokes deflationary fears.

The FED had extended Operation Twist to the end of the year. It is obvious to anyone but the uneducated that a policy that is NOT promoting economic recovery would be greeted negatively by the investment community. Today's report of weakening manufacturing and continued poor jobs data is prompting investors to fear that the FED's policy will lead to deflation. We see the Dollar tack on 0.7 to jump over 82., gold dropping $50 so far and stocks tumbling once again. Oil has dropped below $80/bbl. The FED said that they will leave the door open, but waiting another month is not encouraging. Reports from Europe are not helpful either.