It’s been kind of terrifying lately listening to the gloomy tone taken by nearly the entire media over just the last couple of weeks, as the econ data turns down and the market tanks.
Rather than talking about Lehman and Bear, they’re talking about Italy and Spain (and kind of the US).
Meanwhile, the Dow’s 8-day losing streak was the first of its kind since October of 2008.
Another similarity: The clueless ECB.
In an attempt to fight inflation (which was mainly the result of higher commodity prices), it tightened rates in early 2008… and also in early 2011.
The latest move (this year) is looking woefully premature, and with a gigantic mess on its hands, it’s really hard to imagine Trichet doing anymore.
We made this chart earlier this year, and wanted to bring it back: It shows the ECB top-ticking the commodity bubble with some ill-timed rate hikes, only to then watch the bottom fall out of the economy and oil, as the ECB desperately raced to undo its work.