|Global Stock Markets Emerge as Bubble|
|by Tom McGregor||Sun, Jul 27, 2014, 10:21 PM|
US Federal Reserve Chairwoman Janet Yellen is flooding billions of dolars into global stock markets, which is creating dangerous bubble conditions.
According to Channel NewsAsia, "In a world still struggling to shake off the worst financial crisis for a generation, many economists are worrying that new asset bubbles are already threatening to derail the tepid global recovery. Concern has been rising that investors are paying too much for securities in a search for good returns when interest rates are hovering near record lows, creating the bubble conditions for a new market crash."
Anton Brender, chief economist at Candriam Investment Group, is quoted as saying that, "The problem is not the abundance of liquidity but low interest rates."
As reported by Channel NewsAsia, "The Bank of International Settlements (BIS) warned at the end of last month that financial markets were running ahead of economic reality, and called for governments to stop new debt-driven overspending. The BIS, the so-called central bank of central banks, called for policies that "lean more deliberately and persistently against financial booms and ease less aggressively and persistently during busts."
Perhaps, the US Federal Reserve is hoping to creat stock market crashes to enable them to continue pumping more cash into global stock markets.
To read the entire article from Channel NewsAsia, link here:
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