“HOPES OF STIMULUS STEPS SUPPORT STOCKS” (July 4, 2012)
Thus the Financial Times today. “Investors are betting on more central bank measures to boost global economy,” the newspaper explains the good cheer in the stockmarkets. Indeed. Investors are hooked on stimulus. They could not care less about the world economy, either. It does not take long to figure out that Europe is in the second dip, and that America is about to reenter recession, as well. It does not take any effort to find out that China and India are stalling. Depression is in the air. Adding stimulus to this mess is like flogging a dead horse. But the investors are about stimulus and nothing but stimulus. Ever since Ben Bernanke, the chairmen of the Fed, gave them the first shot in the arm, they have been clamoring for more no matter what. One can imagine the good investors marching in front of the Fed headquarters and chanting: “Stimulus, stimulus, stimulus…”