Contrary to popular belief, Bozo wasn’t the first clown to drop the ball. That honour goes to 16th century jester William Sommers. One fateful day, the usually wildly entertaining fella simply told one joke too many, and before he knew it, both his juggling balls and his head were hitting the floor at the same time.
Next up to drop the ball was the 1966 Swiss soccer referee Gottfried Dienst. His controversial decision to allow a disputed English goal to stand did give England a glorious win over their hated rival, yet it also falsely elevated the country’s sense of self importance on soccer’s global stage. 47 years later, the English still falsely believe they dominate the beautiful game. Yet whenever presented with the opportunity to delight the crowd on the international stage, the bounces just never seem to go their way.
Today, we have the making of the biggest financial clown of all time. As head of the world’s most powerful institution, the US Federal Reserve, Ben Bernanke has lobbed one giant money ball into the global financial system. This ball continues to bounce along one market to the other, and so long as it doesn’t touch the ground everyone is happy. Yet, should this ball grow so large it cannot be supported, one simple slip will be unfortunate for everyone. To follow the interconnectedness of markets, just follow Bernanke’s bouncing ball.
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