Last night Asian markets lead by Tokyo, crashed. The Nikkei, the benchmark for the Japanese stock exchange, fell by 9.38% an amount that can only be called a "crash." Rapidly the world's central banks cut interest rates, hoping that the recent fall in oil prices and rise in the dollar gave some room to maneuver in stimulating economic activity and making money available for businesses and equities buyers. Even the People's Bank of China joined in this action.
We have just had a very near thing, and what is important to realize is that all that was done was to delay. Bush is now cementing his place as truly the Worst President Ever, and Ben Bernanke, while he will be played as having averted disaster by economic fanbois, is now finding a place in the inferno of worst cental bankers ever. His remarks yesterday touched off a global sell off, as he ran like a bear through a china shop through the world's markets.