Reuters - Video

EDITION: U.S. | U.K. | IN

Business

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

▲ Hide Transcript

View Transcript

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

Top News »

Investing 201 »

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

The better bond funds The better bond funds

Wed, Aug 07, 2013 - (2:40)

Best bargain in 40 years? European stocks Best bargain in 40 years? European stocks

Thu, Aug 01, 2013 - (2:24)

Invest like an activist Invest like an activist

Fri, Jul 26, 2013 - (2:49)

Money Clip »

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

“Stalking” your dream home - Money Clip “Stalking” your dream home - Money Clip

Wed, Mar 27, 2013 - (2:50)

3 hidden tax deductions - Money Clip 3 hidden tax deductions - Money Clip

Thu, Mar 21, 2013 - (1:33)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)