[earl237]

I would like to tape Ben Bernanke's mouth shut. He can't say two words without sinking the world's stock markets just when things are starting to look good. Luckily, the fundamentals are looking good and the U.S. and European economies are still improving, so I think the selloff will be short lived, still annoying though.

[ebaines]

Reduction in stimulus was to be expected, and perhaps even overdue. It's like telling the patient that the broken leg is healed enough that the cast can come off, but the we're reducing the pain meds. There may be a rough period, but in general it's good news. We can't sustain interest rates at zero forever.

[tomder55]

I'd say long over due and it was a failed policy that needed to be reversed. All it really did was create a capital flight out of the country to the nation that was willing to buy cheap American debt. .

[paraclete]

well Tom your stimilus has been a beggar your nieighbours policy, It artificially increased the value of our currency because your non existent interest rates and pump priming created the environment for speculation and just a hint of change has sent the speculators scurring back into their holes with stock market and currency values falling dramatically. So much for that marvellous system you call capitalism that cannot exist without massive government assistence all that is missing is the potemkin towers

[tomder55]

So much for your love of Keynesian pump priming

[paraclete]

Hey it is your policies that have bitten both you and us in the bum, not mine.

I don't agree with this continuous pump priming which creates artificial bubbles, nor do I agree with interfering in capital markets by depressing interest rates. Some government assistance is need to get an industry started or help a depressed area but what your government has been doing is ridiculous and it will all come crashing down on your head. The shame is that the rest of us will also endure the pain

[tomder55]

don't agree with this continuous pump priming which creates artificial bubbles, nor do I agree with interfering in capital markets by depressing interest rates

and those are not "capitalism "

But you are correct that QE is an insane policy. What do you think about the Chinese banking crisis that is erupting ? It's beginning to look like Lehmann circa 2008 .

[paraclete]

You missed it Tom I said your form of capitalism cannot survive without government interferrence. Yes China don't know how to handle a property bubble either again a stimilatory policy gone wrong but China have some internal problems they have to handle by stimulus and distraction otherwise revolution. If that happened we would see an enormous world contraction as supply would dry up followed by inflation. China isn't the place you think it is, it takes a long time for central policy to find its way to the boonies

[tomder55]

but China have some internal problems they have to handle by stimulus and distraction otherwise revolution.

Yup the cadres promised prosperity in exchange for serfdom . That era is close to over... That is why they are resorting to militarism.

[tomder55]

You missed it Tom I said your form of capitalism cannot survive without government interferrence

you got it wrong . It's government interference that is destroying capitalism .

[talaniman]

Corporate greed is destroying capitalism.