I think the gist of the idea is that in any financial crisis the markets need to see the bodies start floating to the surface in order to evaluate the risk -- that is happening in earnest now, and the Bank of England along with the Fed's actions pretty emphatically state that they are not about to let the markets grind to a halt, nor are they going to let uncertainty filter into the real economy where productivity, among other things, is all good.
IMHO, today just reinforces the government's role in markets ... to keep things working, whether it is up, down, sideways, whatever. Of course, up is always preferred by the greatest number of people, when that is possible. Not a popular opinion among gold bugs, I'm sure. |
