The divergence in what the guidance the Fed meant to convey about its policy and how the market interpreted Mr. Bernanke’s statements and his assessment of the state of the US economy has created some furor across financial markets around the globe, including our own local financial markets. I have been asked what I thought about the recent market movements.
4  BIS Review 112/2007  In this context it is important to point out that central banks can ill-afford to take any chances with systemic risks. In the process of addressing problems “for the greater good” there could be some by-product of unintentionally providing help to those who do not quite deserve it.