Posted on 08/30/2015 10:06:32 AM PDT by Lorianne
Like children clinging to their parents, stock market traders turned to their central banks last week as they sought protection from the frightening economic figures coming out of China. Surely, they asked, the central banks would ward off the approaching bogeymen, as they had so many times since the 2008 crash.
The US Federal Reserve came up with the goods. William Dudley, president of the bank’s New York branch, hinted that the interest rate rise many had expected next month was likely to be delayed.
A signal that borrowing costs would remain at rock bottom was all it took. After Black Monday and Wobbly Tuesday, the markets recovered to regain almost all their recent losses.
It was just as if they had said to themselves: who cares if China’s economy is slowing; the “Greenspan put”, which so famously propped up US stock markets during the 1990s and early 2000s with one interest rate cut after another, is still in operation.
(Excerpt) Read more at theguardian.com ...
WE’RE to big to fail, you? Not so much!
Articles like this appear after every market correction. It isn’t so much panic in the streets, as panic in the newsrooms of the nation.
Get a grip folks. Stock market corrections are a fact of life. And yes, life does go on.
Sheesh.
They should have let it all crash back in 2008. Painful, yes. But now in 2015 we would very likely be enjoying a robust economy with many years of solid growth ahead of us.
Delaying the inevitable only makes the day of reckoning worse.
Don’t forget that about $2 trillion of QE money went to money heaven last week. All of it still owed to the fed by US taxpayers.
Well...except for that Obamanation thing.
Wait until we test the lows again. They will freak out.
But I always remember it’s a wonderful life: Potters not selling, he’s buying!
Good point.
Nowadays he’d be living in Asia already.
The effort to prop up the markets led to trillions in debt the rest of us have to pay, socializing the losses.
Craig Hemke-We Have the Illusion of Markets
https://www.youtube.com/watch?v=_DTsNptioVA
And why are they saving Democrats from bad economic policies?
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