Uncertainty prevails as markets are hooked on easy money

London

IT is eight years since the Lehman Brothers bankruptcy caused a selling climax in the severe 2008 global bear market crash. Since then Wall Street and other stock markets have soared, but once again uncertainty prevails while participants remain hooked on the central bank money-printing drug.

Such are the jitters at a time of slow US, European, Japanese and emerging market growth that there are knee-jerk reactions ahead and after central bank announcements. What has become clear, however, is the pronouncements and actions of central bankers are having less and less impact on the markets. Price movements have shrunk since former Federal Reserve chairman, Ben Bernanke, ruled the financial roost a few years ago.