From the WSJ:
Concerns are mounting that efforts by governments and central banks to stoke a recovery will create a nasty side effect: asset bubbles in real-estate, stock and currency markets, especially in Asia.
The World Bank warned Tuesday that the sudden reappearance of billions of dollars in investment capital in East Asia is "raising concerns about asset price bubbles" in equity markets across Asia and in real estate in China, Hong Kong, Singapore and Vietnam. Also Tuesday, the International Monetary Fund cited "a risk" that surging Hong Kong asset prices are being driven by a flood of capital "divorced from fundamental forces of supply and demand."
Bubbles? Maybe the world's Central banks realize that nobody wants to own their paper dollars!
Except for all the banks of the world that are hoarding it!
So what do these bankers expect?
Maybe, the Central Bankers should contact Eli Broad, and make a bid for "Bubbles."
But then, they'd know who the chimp is!
Who wrote a thesis entitled, "Long-term commitments, dynamic optimization, and the business cycle!"
(If you read his thesis, and you actually got something practical from it--you're doing better than me!)
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