Expect more turbulence in world markets

See on Scoop.itGreen & Sustainable News

The US Federal Reserve’s hint that it is likely to wind up its quantitative easing programme next year has caused jitters in world markets.

Duane Tilden‘s insight:

>[…] QE {quantitative easing} was in response to lessons learnt from the Great Depression of the 1930s.  That downturn, which lasted a decade, was triggered by liquidity drying up quickly and countries then putting up barriers in a failed attempt to protect their economies.

It’s the kind of collapse that Bernanke, the 14th chairman of the Fed and a scholar of the Depression, was trying to avoid when he chose a course of stimulus. Many doubt QE will be repeated.

The volatility in markets is quite possibly the final stage of Bernanke’s risky experiment to rescue the global economy from the financial crisis, which was sparked by a crisis in US subprime mortgages and the collapse of US investment bank Lehman Bros in September 2008. […]<

See on www.fm.co.za


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s