US stock rally collapses amid fears of global slump

(What did I write the other day when the market flash-crashed? Oh yeah: ” I guess someone thought they needed some help getting another TARP bailout deal done (QE4 is meeting some resistance) and here we are.“)

from the WSWS

…Over the weekend, former US Treasury Secretary Lawrence Summers called for the Federal Reserve to abandon its plans to raise the federal funds rate for the first time in nearly nine years and instead extend its current policy of zero interest rates into the indefinite future.

Summers went further on Tuesday, tweeting that the Federal Reserve should consider further monetary expansion in response to the selloff. As the Financial Times put it, Summers “suggested… that the Fed should even consider another [quantitative easing] bond-buying programme.”

This sentiment was echoed in even more explicit terms by Ray Dalio, head of Bridgewater Associates, the world’s largest hedge fund, who predicted in a research note quoted by the Financial Times that the “next big Fed move will be to ease (via QE) rather than to tighten.”

[read more here]

2 Responses

  1. Not sure why they worry as they could just keep managing the stock prices to keep them green. QE doesn’t work, at least for us. For them is a Get out of Jail type of card, that we pay with interest.

  2. I really love the way nobody who reads this seems to give much of a rat’s arse about this. I’d bet before 2008 many more people would have still cared about the funny munny market.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: