The global financial system is in a difficult state as the world’s central banks react to equity markets as a guide to economic policy. Ben Bernanke has to assume some responsibility for this because of his August 2010 Jackson Hole speech about the importance of PORTFOLIO BALANCE CHANNELS. In an effort to get the “animal spirits” of investors flowing Bernanke pushed for a second round of QE to make interest rates so low that investors, insurance companies and pension funds would choose to buy equities and high yield corporate debt, taking on more risk so as to arouse the capitalist’s desire for higher returns. Once this path is trod and the FED is the bartender rather than the designated driver, the question arises about when the system is healthy enough to sustain increased growth without a continued monetary infusion.