Thursday, June 20, 2013

 From Today's WaPo:

The financial market freakout, in five charts

The strong reactions of the financial markets to mere suggestions that the Fed may begin to taper off its "quantitative easing" program sometime later this year show how tricky the eventual withdraw of this form of monetary stimulus will be. Perhaps it is fortunate that the real economy has not actually benefited much from the Fed's stimulus. You can't fall off the floor. It is the financial sector mainly at risk as a bubble in financial assets once again threatens the solvency of the banking system. We are seeing the early signs of panic as the more worried holders of those assets seek to avoid being the last to get out.

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