Yesterday Ben Bernanke and the Fed went ahead and spent hundreds of billions of dollars buying securities in a paltry attempt to do a teeny tiny bit to help stimulate the economy. Today: another stock market collapse. Ho hum.
As of 11 a.m., the Dow has dropped nearly 350 points today. The fact that some of the world's biggest banks had their ratings downgraded by Moody's yesterday certainly isn't helping. But the conventional wisdom is that the Fed's announcement yesterday has convinced a lot of investors that another recession is coming. And that there is not the political will to prevent it from happening! Which is true.