“MARKET BRUSHES OFF GLOBAL STIMULUS EFFORT” (July 6, 2012)

Thus the Financial Times today. Some of the topmost central banks have dropped their prime rates of interest yet again, but that was far from enough. Taking inflation into consideration, real interest rates have long been negative, anyhow. What investors actually want is more quantitative easing, of course. Addicts that they have become, they will not settle for less. One way or another, the enthusiasm of several days ago is petering out at a clip (“Hopes of Stimulus Steps Support Stocks,” July 4, 2012). Is it not high time to stop worrying about investors, though? The question is whether they are investors at all? Having forgotten about capital and labor, let alone about bricks and mortar, they are stimulus addicts pure and simple. What they need is a financial equivalent of methadone. But wait a minute! Is there any remedy better than quantitative easing when it comes to the treatment of financial withdrawal symptoms? After all, perhaps Ben Bernanke deserves a Nobel prize in economics with a dash of psychiatry for printing money at will.