All this market intervention has done is make the situation even worse.
Lots of analysis as to why crash 2.0 is on its way. Here are the culprits, the ones we have been banging on about for the last 5 years.
Capitalism is brutal but it works. Trying to manipulate markets doesn't. Imagine trying to regulate the internet, probably the best example of capitalism at its best? It can be done with global cooperation (piracy for example) but the most effective way is for the people to do it. Amazingly, and history will show, collectively people are quite good at keeping the status quo and ensuring the wheels keep turning. What they don't like is meddling by red tape lovers and tax grabbing short termists who put sand in the oil.
Regulating the financial markets is the people trying to ensure there is a level playing field and this has on the whole worked. What doesn't and never has done is artificially controlling markets. Here are some examples:
The world's greatest exporter has been allowed to fix its Exchange Rate to keep its exports cheap. Come on down CHINA.
Ailing banks have been given government backed subsidies to continue. Come on down most of the UK for setting the standard.
Deflating countries allowed to print money without recourse. Come on down Ben Bernanke and Mervyn King.
Government agencies buying government and corporate debt. Come on down the ECB and the FED.
Creating global one size fits all currencies. Come on down the EURO.
Countries setting up EMU and then ignoring its own rules and so giving the green light for others to follow (Greece, Ireland, Italy, etc). Come on down FRANCE and GERMANY.
Creating a trading zone that excludes those who are not members from its benefits. Come on down EMU.
Having a credit rating system controlled by one country. Come on down the USA.
Having a historically successful capitalist country run by a socialist. Come on down the USA.
Having one global reserve currency. Come on down anyone who isn't American.
And so on...
Will the last person please turn off the lights (telegraph)
Irish, Greeks and Portuguese who gave in are livid at the help Italy is getting (telegraph)
America to be junk by end of the year (nymag)
Anarchy in Tottenham (telegraph)
China is a hypocrite (reuters)
No country to be triple A ever again.