A friend of mine from college was in town today and I got a chance to sit down for lunch with him. He works with international banks.
"Every central bank in the world dropped rates 50 basis points and the market's still dropping! This is free fall and nobody can do anything about it. We're watching the end of capitalism as we know it." Unfortunately, he may be right:
Central banks around the world have cut interest rates by 50 basis points in an unprecedented move to breathe new life into the ailing global economy.
The Bank of England, the European Central Bank and the Federal Reserve along with central banks in Switzerland, China, Canada and Sweden have collectively cut rates by half a percentage point.
Despite these astonishing and unprecedented actions by central banks worldwide, markets continue to slide, with no end in sight.
If this is the fall of the economic system created by the market fundamentalists, and it appears that it is, then we all have to begin to ask, what will arise to replace it? The most likely answer, is, unfortunately, quite terrifying.
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