“STOCKS EASE BACK FROM RECENT PEAKS” (September 18, 2012)
Thus the Financial Times today. “Markets lose momentum after Fed and ECB bounce,” elaborates the newspaper. Now, this is a surprise! Not even the Federal Reserve and the European Central Bank can produce more than a bounce! Boo-hoo. That is bad news, indeed. Looking from my angle, this is the end of the Ben and Mario show. And it was great fun while it lasted. The twain apparently believed that their tomfooleries could turn the economic affairs around. Against all odds, they convinced many an investor, too. What a show! At any rate, we are back to square one after much money printing. Of course, monetary policy is doomed without fiscal policy to match. Governments around the globe should spend, spend, spend! Gosh, where is John Maynard Keynes when we need him?!