If something doesn't work, then just do more of it. Looks like QE∞ is in the works. The Mother of All QEs! http://finance.yahoo.com/news/fed-seen-starting-qe3-while-040000986.html
That was more or less Einstein's definition of insanity. You don't think the top players are really bonkers do you ?
I think Benjie has some faulty assumptions. The underlying problem is that voters are pigging out at the Treasury Troth. But he cannot fix that, nor can any of these bankers. So they stop giving the fiddler coffee and start giving him crystal to keep the music going faster and faster even as everyone knows there just aren't enough chairs for us all. Eventually the metaphors get mixed to a Hershey-like insanity and everything crashes down.
I think Europe and the USA should just get used to the facts that other countries can produce cars, TVs etc. at better value currently. A good idea might be to cut costs and not throw their last $$$$s into the pot for a make or break hand. ( Mixing my metaphors too). "That means policy makers will probably announce a new open-ended plan tied to a sustained improvement in the economy" They could start planning for a year on year contraction of the economy.
QE infinity Another fucking joke, this is the most fantasy like economy and market that has ever existed.
Its called QE infinity so the markets should have no worries, this little minor pullback is a buying opportunity. Everyone is calling for new highs by the end of the year so this dip is just free money for those who buy right this second.