The Central Banker's Roller Coaster

GDP was revised higher today, but mostly due to inventory builds. Not good!

It's the Debt, Stupid!

Central Bank Emperors Have No Clothes!

RBS' Alberto Gallo,

"Policymakers responded to the financial crisis with easy monetary policy and low interest rates. The critics — including us — argued against 'solving a debt crisis with more debt.' Put differently, we said that QE was necessary, but not sufficient for a recovery. We are now coming to the moment of reckoning: central bankers look naked, and markets have nothing else to believe in."

When Do We See the Consequences?

After being up 350 points today, the Dow closed down 200 points instead. When will we begin to see the consequences? When will a Bear Stearns collapse again? When will be the Lehman Bros moment?

Today's collapse:

The Dow has lost about 2500 points since late July!