With the Federal Reserve keeping interests at near zero percent and printing money through quantitative easing, many believe asset bubbles are forming in various stock and real estate markets around the world.
The concern has become so great that shortly before Barack Obama arrived in China, the chairman of the China Banking Regulatory Commission warned that the weak dollar and low U.S. interest rates have led to "massive speculation" around the world.
At best, we are distorting investment decisions which will retard long-term economic growth. At worst, we may be sowing the seeds of the next financial crisis.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment