Running out of psychological ink. You can only print so much so long.
Global shares sink on U.S. stimulus pullback, Chinese growth fears
Share markets fell sharply on Thursday as investors piled back into safer assets, unnerved by the twin setbacks of unexpected weakness in China's economy and signals that the U.S. central bank may soon scale back its stimulus program.
The yen bounced sharply off recent lows and German Bunds rose, gaining support from a shift in sentiment that followed Fed Chairman Ben Bernanke's comment that the bank may trim its bond purchases at one of its next policy meetings.
Given the AP story and computer hacking of reporters by the FBI, this meeting tomorrow at the WH, may not be the rally Obama hopes for. The WH may get an ear full of venom they do not expect. That said, it will be useful to watch how left-wing media responds this coming week. I think the WH may get a pass on Benghazi, but EVERYONE deservedly hates the IRS, so something to look forward to.
So interest rates near zero percent are necessary for stock prices to rise? Back in the "old days" it was expectations of increased economic productivity -- production of useful goods and services -- that boosted stocks. That's long forgotten today Today it's "stimulus" and other sorts of governmental smoke and mirrors that create no value at all.
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