Submitted by Phoenix Capital Research on 12/01/2012 15:08 -0500
The ECB did indeed announce an unlimited bond buying program on September 6 2012. The Federal Reserve then announced an open-ended QE program a week later on September 13 2012.
And that’s when everything changed.
Instead of blasting off into the stratosphere, stocks fell soon after this announcement. That was the first sign that the game has changed: after every other announced program in the past four years, the markets fell briefly but then rallied hard and didn’t look back.
Not this time.
And so we experienced the first item I listed above (investors grew accustomed to Central Bank intervention that they no longer respond to additional measures).
We now are also experiencing #2 (Central Banks are facing a problem so massive that it is beyond the power to stop it). That problem is the fiscal cliff which Bernanke himself has admitted that the Fed cannot contain. “I don’t think the Fed has the tools to offset [the fiscal cliff].”
http://www.zerohedge.com/contributed/2012-12-01/we-have-reached-major-turning-point-central-bank-intervention
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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