Wednesday, June 19, 2013

Roubini: The Fed Exit Strategy Will Be 'Treacherous'

"If financial markets are already frothy, consider how frothy they will be when the Fed starts tightening — and then when the Fed finishes tightening.""The Fed's (and other central banks') liquidity injections are not creating credit for the real economy, but rather boosting leverage and risk taking in financial markets," Roubini and Bremmer explain.

"Thus the exit from the Fed's QE [quantitative easing] and zero-interest-rate policies will be treacherous," they maintain.
say Nouriel Roubini, a New York University economist, and Ian Bremmer, president of Eurasia Group, a consulting firm in Institutional Investor in a new paper called "Unveil the New Abnormal"
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