Monday 4 November 2013

Cliff Küle's Notes:

Cliff Küle's Notes
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Nov 4th 2013, 22:07, by noreply@blogger.com (Cliff Küle)

Any Good News 
Could Become Bad News
For The U.S. Economy
JP Morgan commentary on the bubbles in the financial markets & the economy, how a spurt of good news could be bad news in serving as a catalyst to burst these bubbles .. the commentary emphasizes the role of easy monetary policies, quantitative easing & low interest rates by the Federal Reserve has created serious asset bubbles that threaten future growth & investment returns .. "A bubble view is a view that the Fed will stay easy for too long and will then have to stamp on the brakes when growth and inflation suddenly react to easy money .. This summer's taper-talk crisis highlights that a sudden spurt in growth is the biggest risk to asset reflation." .. [Cliff Note: In other words, if the economy turns for the better, interest rates could move higher, bursting the bubbles - as long as the economy stays weak, things look relatively stable.]
LINK HERE to the commentary

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