Marketwatch: “U.S. stocks toppled again Wednesday, continuing a manic trend that has had the Dow industrials swinging 400 points each day this week.”
Why did this happen? Here’s one answer.
The economy is like a sick patient. Yesterday, the markets worried whether Dr. Ben would renew their prescription. When he said he would, at least re the medicine of zero interest rates, they were elated. He even said he’d renew the prescription for two more years! Hooray…big rally!
Then today, the markets got out of bed and said: “Wait a minute…Dr. Ben just said I was going to be really sick for another two whole years…oh no!…big selloff!”
Dr. Ben also said that even though he had stronger medicine (another round of quantitative easing) in his black bag, in his opinion, or probably more accurately in the opinion of the medical practice he runs, we didn’t need it.
Enter Snidely Whiplash…