Thursday 8 December 2016

Correction or crash, it's going to get bumpy either way

Published 13/01/2016 | 02:30

'If enough people believe we’re heading for a crash it becomes self-fulfilling and we’ll get there regardless.' (stock image)
'If enough people believe we’re heading for a crash it becomes self-fulfilling and we’ll get there regardless.' (stock image)

The benign view is that the losses suffered on the financial markets since the start of the year are the birth pains of a restored economic order.

  • Go To

According to that relatively happy scenario, the price of all kinds of financial assets - bonds, shares, commodities - have became bloated beyond all reason by the cheap cash pumped out by first the United States Federal Reserve and Bank of England, and now the European Central Bank.

So called quantitative easing (QE) flooded the banks, and through them the financial markets, with cheap cash over the past five years.

Please sign in or register with Independent.ie for free access to Opinions.

Sign In

Read More

Don't Miss

Editor's Choice