Ace:
This is the most awesome presidency in history.
Stock, bonds, commodities, and currencies around the world got destroyed today. Today’s drop in the S&P 500 was the worst one since 2011.Today’s calamity was really an extension of yesterday’s sell-off, which appeared to be triggered by comments made by Federal Reserve Chairman Ben Bernanke. Specifically, he said that the Fed could begin to taper, or gradually reduce, its quantitative easing program as early as later this year. In other words, they would be scaling back on their monthly purchases of $85 billion dollars worth of mortgage bonds and Treasury securities.
Some argue that the most devastating news was the surge in an obscure Chinese interest rate called SHIBOR, or the LIBOR of China. In 2008, surging LIBOR rates preceded the global credit crunch, causing the global economy and financial markets to spiral.
So we’ve got that to look forward to.
