If GROWTH depends on monetary policy then why is it not only not working now, but rather hasn't worked with HISTORY's best live example ....... Nikkei = near 40,000 in 1989, now near 10,000 amidst massive pumping, 0% interest rates, 22 years gone by and the slide continues .... the slide in what, you may ask? in collective = HERD psychology HERD went from consuming like Kings to dining like Misers. Despite rates at 0%, banks lack borrowers. Original WSJ story ran in 2001 titled, "Puzzle in Japan" On the street the sentiment is clear ... = life sucks without jobs, the uncertainty of the job lasting or that if let go that another would be or could be found = prospects are dim = collective sentiment across the board.
hence the DOW will reflect this reality as well. Trading will dry up among independents, as money stops flowing in from "THE MASSES". Volitility will be crazy as HFTs fight agains the "Funds" to try and eak out .001 of a penny per trade. The writting is on the wall. So who cares as its nothing new or "Shocking". People are still making shit tones of money in other markets, in other industries...etc
The argument cuts both ways - if monetary policy is that ineffective, it cannot be the cause of the current problems, either.
http://www.youtube.com/watch?v=AwHvyqNDUvE British officers called " americans" yankees" Hence we speak English
Way back when, you'd look at the bottom of a radio and it said "Made in Japan". History repeats itself over and over, America will come back and one day when a China man is shopping at Squid-mart for a computer, the cheaper one's will read "Made in U.S.A.".
If QE was the cause, QE is the solution too? This only works in very tiny infinitesmal doses to build immunity. To cure a chronic cigarette smoker (100 cigs/day) Bernanke recommended 200 per day to cure the habit. Hey it could work. It killed the guy and therefore worked.
I could have titled it USA is laffing at HISTORY or historical evidence. I didn't want to go that route because it would make America seem even more stupid.
1987 crash just happened. FED never saw it coming. 2000 crash just happened. FED never saw it coming. 2006 real estate crash just happened. FED never saw it coming. 2007 worldwide crash just happened. FED never saw it coming. --------------------------------------------------- Now it gets loooonier ....... if they never saw it coming, how can they say that it is over? if they never saw it coming, how can they say it won't happen again? ---------------------------------------------------- Credit/debt set in in motion. They are solving this with MORE debt? (only works for viruses )