Finance & Fury Podcast
The Central Banking Bubble and what happens to asset prices if central banks stop QE?
- Autor: Vários
- Narrador: Vários
- Editor: Podcast
- Duración: 0:21:50
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Sinopsis
Welcome to Finance and Fury, The Furious Friday edition I often wonder – Why the Fed/Central banks continue with polices that create a massive misallocation or resources and are hurting the economy more than helping – well – what If they cant stop or a collapse might follow Central bank policies cannot be unwound without creating a market collapse Central banks are focusing on inflation – but money printing has resulted in inflation of asset prices – not in consumer economy – no real business growth (despite markets going up) – limited wage growth and affordability issues – a bit of a mess Situation, where the policy response is to lower interest rates to try to boost CPI through increased ability to spend more and businesses, can increase how much they sell for – i.e. basket of goods goes up – but doesn’t work as the printed money never ends up in the equation, as velocity of spending is needed- if the money is in the financial system through sinking money into investments – then velocity of that under curr