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Insane amounts of liquidity fuel bubbles

Mish's Global Economic Trend Analysis: Fierce Selloff in Emerging Market Currencies; India Intervenes to Stop Plunge in Rupee; Brazil Steps Up Real Intervention; Root Cause of Crisis: " . . . insane amounts of liquidity fueled various bubbles in stocks, in bonds, in emerging markets. But with the global economy rapidly slowing, and with much of Europe in an outright economic depression, the Fed is not that likely to curtail QE soon. If the Fed does slow QE, it will not be because the US economy is strengthening, but rather realization by the Fed (not admitted of course) that various stock and bond market bubbles pose serious economic risks if allowed to grow bigger. . . ."




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