What was it, a week ago we were in free fall down 800 points on all markets?
Today we are in free fall in all markets BELOW where we were during last weeks fall. But we did manage to find the time to set fire to 750 Billion Euros in the mean time. That was our policy response to the first fall. Genius.
Its like being on a jet whose engines have failed and finding that a nearly complete spare engine and all the parts to make it work and fit it – which were miraculously being carried as cargo – are being shovelled out the door to plummet earthward – and the captain yelling that your only hope is to lose weight so you don’t hit the gorund so hard.
750 Billion Euros would kick start a lot of real productive capacity. Instead this next leg of the downward dive is because growth prospects are diminishing due to the severity of the necessary austerity cuts. Cuts made worse to the tune of 750 Billion euros.
No one is being saved but the banks. And they won’t be saved either.