It will be gradual. China's financial markets and their banking system are extraordinarily fragile. They cannot endure the rough and tumble of the global financial markets.

I don't think we ought to make too much of this (dollar spike) but it does represent what we're going to see more of, which is China gradually accommodating its behavior to the wants of globalization and the global marketplace.

I think there are serious issues Washington needs to address, and they won't get addressed. The government is utterly overcommitted on entitlements, and it's not going to be fixed any time soon.

The condition of the US economy compared to the other industrialized economies around the world is clearly superior and we are sucking in an awful lot of capital from abroad and that is part of this advance it reflects how competitive our economy is. This rapid advance in the beginning of the year wasn't really expected by anybody and you can't expect it to continue at this pace. But until the economy gets knocked off dead center -- and I don't see that happening yet -- I think we will have a market that continues to have more up days than down days.

The Fed didn't act because the economy looks like its still right around its equilibrium level. The economy is growing slowly, inflation is under control. So the Fed will just leave policy unchanged until the economy gets knocked off a dead center, and I don't think that's going to happen in the near future.

What happens to these securities — it's up to the investors, not any government agency.