Central Banks Have Reached Their End Game

"The markets have called Bernanke's bluff," says Graham Summers, chief market strategist at Phoenix Capital Research. The problem, according to Summers, is that Bernanke and company don't have any cards left. Benzinga Radio got his thoughts on yesterday's 6.66% market plunge and what response we'll see from the Fed.
As it is harder now than ever to argue for the effectiveness of quantitative easing, the Federal Reserve appears to be running out of policy options to fix the US economy or even temporarily placate markets. Summers:

"From a philosophical standpoint, what we're reaching is the endgame for central bank intervention. When you have a debt problem, you can't fix it with more debt, which is what the central banks tried to do. It works temporarily because it restores investor confidence, but it doesn't address the fundamental issues in financial markets. It becomes a giant Ponzi scheme where we need more and more money from central banks to keep [economies] going."

at http://www.benzinga.com/general/movers-shakers/11/08/1845449/central-banks-have-reached-their-end-game?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+benzinga+%28Benzinga+News+Feed%29#ixzz1UYfIkCdR