THE GODSEND AMONG OIL SHOCKS: A LETTER TO THE ECONOMIST (March 8, 2011)
You warn in your main leader that the unrest in the Middle East harbors “more of a threat to the world than investors seem to think” (“The 2011 Oil Shock,” March 5, 2011). I agree with you up to a point, for it is amazing to watch the stock exchanges amidst the tumult. Jittery, but still inexplicably steady. The unrest is also a boon, though, which you miss entirely. “Just as the world was recovering,” you pronounce on your front cover. But was it? In fact, it was teetering on the very edge of another bust perpetrated by the bubble created by Ben Bernanke and his lot. The oil shock thus provides a welcome excuse to the befuddled central bankers let by the Fed. I can almost hear a sigh of relief on their part, for now they will have to wait for another disaster to test out iffy remedies such as quantitative easing to the hilt. As things stand, the godsend among oil shocks will keep everyone guessing much longer.