Easy money is goood for global equity markets

News. FRANKFURT (AP) — The European Central Bank and the Bank of England kept interest rates at record lows Thursday as their economies struggle to emerge from recession.

The British central bank added an extra boost by adding 25 billion pounds ($41 billion) to the supply of money, following disappointing data last week that showed Britain unexpectedly shrank in the third quarter.

The European moves come a day after the U.S. Federal Reserve also left rates at a record low of 0-0.25% and said it would keep them there for "an extended period" even as growth picks up after a deep recession. The world's central banks have slashed interest rates and pumped extra money into their economies and banking systems since the crisis began to bit in late 2007.

My comment. They look so important. Yet we keep sliding from crisis to crisis. Do they really know what do do? They will keep pumping money to keep stocks rising and re-build our confidence in the system. Until the next crisis.

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