The Damage Bernanke Has Done To Every Major Asset Class Since May 22

Buainess Insider ^ | 6-25-2013 | Matthew Boesler

[blam]

The Damage Bernanke Has Done To Every Major Asset Class Since May 22

Matthew Boesler
June 25, 2013

When Federal Reserve Chairman Ben Bernanke failed to rebuff a suggestion during his May 22 congressional testimony that the central bank could begin tapering back bond purchases in September, the stock market finally began to stumble.

A rapid rise in U.S. Treasury yields had caused volatility in global markets since the beginning of May, but it wasn't until Bernanke's testimony that equities started to show weakness.

Since then, equity investors around the world have faced increased volatility thanks to concerns that slowing of quantitative easing will happen sooner than expected, removing liquidity from the marketplace.

The chart below, via Deutsche Bank economist David Folkerts-Landau, shows just how hard tapering fears have hit several major markets across the world.

In the equity space, the Brazilian Bovespa has been hit the hardest, followed by the Japanese Nikkei, the Shanghai Composite, and MSCI's broader emerging markets index.

[jiggyboy]

Yet another bad evening for gold and silver. The old “liquidating to meet margin calls” excuse became an impossibility at least $150 ago.

[Whenifhow]

Thanks for posting!

The Federal Reserve after Ben Bernanke

http://www.batr.org/negotium/062613.html
Article discusses various suggestions for nominations to the Fed Reserve post.

and note:

Keep monitoring the progress of the BRICS Development Bank. (http://www.batr.org/negotium/040313.html)
Competition to the dollar-dominated monopoly banking system is the actual challenge to central banking after the Bernanke tour of duty.