Only Cure for Slump Is a Slump: Strategist

Talk of stimulus spending simply delaying an inevitable crashis rife and one strategist said that what the market needs is a good, old-fashioned fall in prices to clean up the system.

"The best cure for a slump is a slump," Sean Corrigan, the chief investment strategist at Diapason Commodities Management, told CNBC Tuesday.

"It is in the boom that the economy has become diseased and the bust is no more than the therapeutic re-ordering of affairs on a more healthy if, often, a sadly less complaisant basis," Corrigan said.

"If the market for housing construction picks up faster the more rapidly house prices fall from their unsustainable heights, then the same is true for every other good and service which has been rendered too expensive in the bubble years," he said.

So, as the Federal Reserve prepares for what many hope will be an extension of quantitative easing, Corrigan said he believes the central bankers would be better off hitting the beach rather than pumping yet more money into the system.

“Every action taken by the central bank and finance ministry to forestall this readjustment and so to speed along what some call recalculation process is like a lunatic (order) not to yield a yard of ground" to advancing troops "no matter what the tactical or strategic imperatives to do so may be," Corrigan said.