Easing Economic Stimulus & Protecting the Fragile Economy

Tuesday, June 25, 2013

A trader signals an offer in the corn options pit at the CME Group March 15, 2011 in Chicago, Illinois. U.S. stock and commodity prices tumbled following a sharp drop in Japan’'s stock market. (Scott Olson/Getty Images/Getty)

That announcement from Federal Reserve Chairman Ben Bernanke last week that the Fed plans to pull back on stimulating the economy was one big factor that precipitated what's being called a liquidity crisis as the financial system tries to imagine a world without the Federal Reserve system propping up the money supply.

It's been a collective look down from what seemed like a comfortable ledge just a week ago. Add to that worries in China about consumer confidence and the backing of its own banks, in addition to a crisis in Brazil, and the summer starts to look hot and dry.

Gillian Tett, assistant editor for the Financial Times, joins us to discuss Bernanke's announcement and the apparent market freak out.

Guests:

Gillian Tett

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