Historical reminder on the mirage of central bank ‘control’ on markets

The wheels of central planners are coming off all over.

As Russia is re-learning this morning, Central Banks tinker at the edges of sentiment. Sometimes they are successful in swaying it one way and another–at least for a while. But in the end, their ‘bold’ interventions fail miserably, lurching from one crisis to the next, evaporating buckets of taxpayer dollars in the process.  See: Russian rate hike fails to stop the Ruble’s crash.

Here is a direct video link to a BBC documentary on the Sterling crash of September 1992 when the British government lost ‘control’.

Contagion is spreading through the world’s closely coupled risk markets.
Confidence cracks spreading

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