Wednesday, October 08, 2008
You have to wonder what's going through the minds of central bankers around the world these days as their remedies do not seem to be having the desired effect.
U.S. markets are bravely trying to lead an advance out of the morass, but conviction is lacking (that is, with the exception of the gold market and mining stocks).
The report in the Telegraph from which the picture above was culled tells of the difficulty encountered across the pond after bold announcements from the government.
After a volatile day of trading, stock prices ended the day markedly lower in the U.K., the FTSE recovering almost two percent from its lows but still managing to lose another five percent on the day.
Apparently, the men above would be better advised to look upward rather than horizontally as, just the other day, Pope Benedict noted the world financial system is "built on sand" and that only the works of God have "solid reality".
Of course, gold bugs will surely interpret this to be a call hard money which, after reading the full report, is really not much of a stretch.
''We are now seeing, in the collapse of major banks, that money vanishes, it is nothing. All these things that appear to be real are in fact secondary. Only God's words are a solid reality''.As if central bankers and Wall Street types don't have enough to worry about, they have one more thing to add to their list - "the Wrath of God".
He was referring to Jesus's words in Matthew Chapter 7, beginning "Beware of false prophets, which come to you in sheep's clothing, but inwardly they are ravening wolves."
Jesus adds: "Whosoever heareth these sayings of mine, and doeth them, I will liken him unto a wise man, which built his house upon a rock …but everyone that heareth these sayings of mine, and doeth them not, shall be likened unto a foolish man, which built his house upon the sand.”