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Bubbles: hard to spot, impossible to avoid. Are we in one?

Friday, Mar 15, 2013 - 02:23

Mar. 15 - The financial crisis has had many unintended consequences. One of them is central bank liquidity fueling asset bubbles, which many observers say could be about to burst. Again

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Somebody once called irrational exuberance others might call it positive contagion. Growing investor confidence rapidly rising asset prices and a deepening feeling the world's -- central banks too scared to take away the punch bowl. Yes only a few years after the entire global financial system came within I was of collapse some markets are answering bubble territory once again. The Dow Jones was up to its highest level. -- and then there's the US government for a month the biggest couple of them all according to some observers. One of them fifth child -- founder and president of Charles -- reception. It's very interesting if you talked to people assist you think interest rates a -- well again this is of course will go up and is still pouring money into bond market. You should know that these equity market comes down. The public who is a lot of money but if the bond market comes down that's much more multiple than -- equity market so that we real trouble. -- the -- I think the second half fulfill -- here. The economy strong and nobody things which will help to work. See you erase co -- and we finished a whole bull market in bonds so for the next thirty years the cycle is found in the bombs and yields are up. Even in crisis hit Europe many markets are showing no signs of skeptical stocks at the highest in five years. And in the corporate world companies -- borrowing on the capital markets at a rate not seen for years. Thanks to record low interest rates the premium that lower rated companies including so called -- treated farms have to pay to -- has fallen sharply. So what what are you should be beat. Looking at then another comparison of the last time that -- was about 141000. In October of 2007. And so as Betty. But if you have faith in the world Central Bank goes you can relax. They will ensure there's no posting up bubbles and eagle asset market collapse. The trouble is though a central bankers themselves are quick to point -- It's hard to know when -- and a bubble in the first place. Do we feel it is a bubble. It's very hard to respond to this question Vizio are asking me with a stock price that we see now right the wrong. Very hard to say. So we may not know for sure what month and a bubble. We should know when one has -- the singles. Out and done and --

Bubbles: hard to spot, impossible to avoid. Are we in one?

Friday, Mar 15, 2013 - 02:23

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