Like giving too much sugar to a five year old the 600 Billion dollars made US equities go on a sugar high yesterday. The fed is hoping that this is enough to jump start the economy after keeping interest rates at virtually zero. I was once told the definition of stupid is some one who does the same thing again and again but expects a different result.
The current Governor of the BOE Mervin king agrees that our current banking system is the worst one we could possibly have. Therefore we have moved on from recognising that our system doesn't work. Now we must concentrate and find one that does. QE2 will just hide the problem, what we do need is someone brave enough in the fed to make the hard decisions and not just pander to the whims of wall street.
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