From Bill Bonner, Chairman, Bonner & Partners:
BALTIMORE – The Dow dropped 174 points on Thursday the biggest fall in six weeks.
Not the end of the world. Maybe not even the end of this year’s bounce-back bull run.
The Hard Rocks of Real Life
As you’ll recall, stocks sold off at the beginning of the year, too. Then, investors were buoyed up after central banks got to work – jimmying the credit market on their behalf.
The Fed swore off any further “normalization” until later in the year. Central banks in Europe, Japan, and China all took bolder and more reckless action… with the Bank of Japan following some European banks by going into “full retard” mode with negative interest rates.
Now, according to the narrative popular in the financial press, investors are beginning to worry that central banks are not very effective after all.
As to that last…