(BBC) Global markets fall as end to US stimulus beckons

Global markets have fallen sharply after the Federal Reserve signalled it may begin to scale back its stimulus of the US economy later this year.

On Wall Street, the Dow Jones dropped 354 points, or 2.3%, to close at 14,758, while the S&P 500 had its worst day since November 2011, shedding 2.5%.

European stock markets were down 3% or more by the close….

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Posted in * Culture-Watch, * Economics, Politics, Economy, Federal Reserve, Globalization, Stock Market, The U.S. Government

2 comments on “(BBC) Global markets fall as end to US stimulus beckons

  1. Vatican Watcher says:

    The End is near. Whether it leads to just another Great Depression or an actual apocalyptic scenario remains to be seen. But guns, ammo, food, and spirits will all be useful commodities one of these days.

  2. Militaris Artifex says:

    Why would the markets fall sharply if government spending didn’t cause investment bubbles ([i]i.e.[/i] “booms,” which almost necessarily are succeeded by “busts?” The answer should be obvious, it was (at least to a large extent) the government spending which caused the [i]faux[/i] “boom” in the first place.

    It was most definitely NOT the productive creation of wealth that did so. If it had been, there would be no [i]negative correction[/i], no “bust,” because had there been the productive creation of wealth, we would all be collectively better off and there would be no automatic economic contraction. Keynes was wrong, immensely wrong, in assuming that the purpose for which the money has been spent is of no material importance. He should have won the Nobel Prize for intellectual [i]hubris[/i], which his acolyte Krugman has also now conclusively earned.

    [i]Pax et bonum[/i],
    Keith Töpfer