Some of my friends are asking this
question. First, the Fed did build up even greater expectation that they will
likely intervene soon. September will be the likely date; otherwise any later
day would make Republicans blame Bernanke, who is a Republican, for helping
Obama. This effect will hold the market for the next month so as not to completely
fall out of bottom. Second, Draghi has built up high expectations of ECB
intervention and has had some effect. They are expected to clarify tomorrow,
but I am sure it will be some boilerplate stuff again when push comes to
shovel.
