The stock market tumble is no reason to panic
The markets are tumbling. Investors are bailing out. And there are already fears that the plunge in equities is a sign that a recession is just around the corner in America. With a presidential election only a few months away, the Federal Reserve will come under intense pressure to bail out the market with a cut in interest rates as it has done so often over the last quarter of a century. So will central banks in the UK and the Euro-zone. This time around, though, it would be madness to cut rates: it will just make the asset bubble much worse. The FTSE-100 has fallen sharply again this morning,
