Central bankers around the world AGAIN bailed out the markets and provided desperate liquidity to the market. How much linger can they continue to do this? Or better question why do investors and the investment community continue to think that they will? When will they face their brutal realities. They will when the bottom falls out.
The US Federal reserve alone put in another $400 billion dollars, and allowed investors to use Mortgage backed securities as security on these short term loans, now that is a scary proposition.
“This will not turn the economy around or fix all the problems in the markets, but it should reduce the liquidity issue, at least for now,” said Ian Shepherdson, chief economist at High Frequency Economics.”
“Is this going to cure what ails the economy? I would guess everyone realizes the answer to that is going to be ‘no,’ ” said John Lipsky, the IMF’s first deputy managing director. “Is this going to be helpful in addressing the strains in financial markets? For sure, the answer is ‘yes.’ ”
So what should you do? probably get out of the market and go into commodities, especially gold, and get out of debt. Cash is king in times of uncertain economics.
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