Hey, what's that sound? It's markets going down! This time, Max Keiser and Stacy Herbert couldn't help paying attention to the volatility going on in the financial markets.
As stocks have collapsed a few days and weeks ago in China, some investors who suffered from huge losses, went to hotels where their brokers were hiding and brought them to police stations. That was a symbol of people getting rid of the illusion of "magic". Central banks all over the world created the situation when people believed their magic trick. Their markets were levitating beyond any level possible in a real economy, and people believed in it. And the anger is now vivid in the panic of bankers who flee from Manhattan in their helicopters.
Indeed, central bankers in the U.S. or China think they are above markets, they can control the flow of rivers, however, it doesn't work out at the end of the day. Markets exert themselves while central bankers put the blame upon somebody else.
Central banks in Europe and Asia have expanded their QEs, and China does a lot more! And yet, this debacle! A couple of episodes more, and people will start to question omnipotence of central banks and their ability to inflate the markets... If those doubts spread, QE will be of no help any more. Omnipotence works only if to believe in it.
