That was the Federal Reserve absolute nothing of a statement. Actually if we pay close attention the news is worse than we thought. The Fed extended the zero interest rate policy to 2014 from 2013, lowered its growth forecast, and increased its unemployment rate expectations.The more we look at the Fed Statement; things are surely getting worse for the U.S. economy and the world economy. We have fallen from a sure recovery in the first quarter of the year to the chance that things are coming to a screeching halt, and fast. The Fed’s decision not to act, and announce more stimulus was most definitely disappointing to the Equity and Commodities Markets. The anticipation was some hint of the Fed expanding their balance sheet and helping the U.S. economy from slipping closer to recession. Although the door always remains open, and there are still signs that this will happen later in the summer, the markets were looking for this to happen NOW! Today’s sell off in equities and commodities was validation of this point. The biggest fear remains deflation, and when there is no stimulus in play, deflation shows itself and all asset classes but Treasury Bonds and the U.S. Dollar are adversely affected.Where do we go from here? Equities and commodities go lower, and rates continue to drop. However this is not a good sign for the U.S. economy and the very unstable real estate sector. The flip side is rates continue to drop, and at some point it will get people back into real estate. The idea being that if financing gets cheaper and cheaper, as an asset real estate becomes more and more attractive. The downward pressure that limits this from taking hold is the unemployment numbers, and the stagnant job market. Without jobs, people will not buy, rates can go to 0%, just like the car industry, but in the end it will not sell more homes, there is no confidence.In the end the Federal Reserve will act. They have committed to making this work, no matter what it takes. Mr. Bernanke is a student of the Great Depression as always advertised. He knows The Depression took hold because there was a lack of liquidity, which lead to the demise of confidence. People gave up on the American Dream, and that cannot happen. For now, they are content to let the markets find a bottom and rein in inflation, so that when they do pull the trigger it won’t be overdone.Ultimately I believe the correct advice is to stay the course. Cash is king, and there are great opportunities that will present themselves. What is happening today is historical! We will look back 10 years from now, very much like people looked back at the ’40s in the late ’50s and ’60s and saw opportunity. As people in the ’90s and 2000s look back at the late ’80s and early ’90s and saw that was the opportunity.