Central banks have created the illusion of calm. It won't last.

By boosting asset prices, policy makers aimed to buttress elevated debt levels and, via the wealth effect, increase confidence, consumption and investment. 

But rising values of financial instruments representing claims on productive assets don't create real purchasing power unless converted into cash or real enterprises producing earnings.

Satyajit Das, Bloomberg 3 januari 2018

Kommentarer

Populära inlägg i den här bloggen

Mervyn King

4 oktober. Vänsterpartiets kopplingar till terrorklassade islamistiska nätverk. Why Bowl Together When You Can Scroll Alone? Wall Street’s AI Party.

Stegra; Wallenberg hyllades. Pengarna verkar nu inte räcka.