http://dailycapitalist.com/2011/06/13/the-bifurcated-economy/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheDailyCapitalist+%28The+Daily+Capitalist%29
Global markets for the past nine months have experienced their version of a sugar high. Assets from commodities to equities have been boosted and the US dollar pummelled by one of the biggest experiments in recent central bank history: the second round of so-called quantitative easing by the Federal Reserve. …“Asset price inflation really is a consequence of QE,” says Paul Marson of Lombard Odier, a Swiss private bank. A 90 per cent rebound in the S&P 500, the main US share index, since its low point in March 2009 has coincided with the Fed’s two QE programmes. Commodity prices, as shown by the Reuters Jefferies CRB index, are up 67 per cent over the same period, while the dollar has fallen 17 per cent.
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