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European and U.S. stocks sank sharply in response to Federal Reserve chief Ben Bernanke's comments Wednesday, in which he outlined a plan for dialing down the Fed's stimulus program. The Fed will not take action until it's confident that the labor market and broader economy can withstand the shift, Bernanke said. Rana Foroohar writes, "What a strange world we are living in when Ben Bernanke holds a press conference to say that he's essentially going to do nothing, and the markets go down 200 points."

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