Friday, June 17, 2016

Strategists Foresee Dire Consequences 
In The Fed’s Reluctance To Raise Interest Rates
"The longer they leave rates low, the greater economic and asset-class instability it creates" .. Strategists are warning the delay of normalizing interest rates is setting the U.S. & the world up for another economic crisis .. "The Fed knows it is putting monstrous distortions on the domestic economy, because of the misallocation of resources that’s caused by having money mispriced .. I would argue that the Fed having rates that were too low in caused monstrous misallocations of capital throughout the world, whose effects we felt in and currently also in 2016 and counting .. If the cure to the downside of this is to have the same misallocation of capital, the only thing I don’t know is exactly where the problems will show up next. But I can see the Chinese boom followed by a bust, I can see the commodity boom followed by a bust, and I wish we could get back to an even keel."
LINK HERE to the article

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