Posted on 09/21/2009 10:54:11 PM PDT by blam
Pound Slides Again As Markets Enter Bank of England-Fuelled Bubble' Stage
The pound slid closer to parity with the euro on Monday, as one of London's leading hedge fund managers warned stock markets are in a Government-fuelled bubble.
By Edmund Conway and Jamie Dunkley
Published: 6:26AM BST 22 Sep 2009
"Markets are now entering a bubble phase [which may last] until the end of the year," said Crispin Odey of Odey Asset Management.
However, the bubble is almost entirely dependent on the Bank of England's quantitative easing (QE) policy, through which it is creating £175bn and pumping it into the system by buying Government debt, he added.
[snip]
(Excerpt) Read more at telegraph.co.uk ...
‘Government-fuelled bubble’
Status quo.
HAHAHAHAHA>>>>breathe>>>>HAHAHAHAHAHAHAHAHA
The same thing is happening here. This “rally” or dead cat bounced is being driven by Fed $$$. It probably will not last.
I expect all the government printing and borrowing to drive up interest rates substantially. Driving up interest rates will have a devastating affect on home owners with adjustable rate mortgages. A whole new round of this economic flu is just around the corner as a result.
The witchdoctor I listen to about the market says give a few more weeks to suck in the small guys and then they'll close the gates and start the real crash......er excuse me downturn and correction.
the munny hunnys will still be talking green shoots.
Obama II wi;; be a real dilly
by: Erwan Mahe
September 21, 2009
We are regularly asked by clients if we have (at last) changed our extreme outlook on inflation price indices in G7 nations.
The (hyper) inflation vs deflation debate has lost none of its virulence and, now that the biggest part of the base effect on headline indices from last summer’s commodity price surge is over, the pseudo-Friedmanite camp is finally rearing its collective head in anticipation that the massive liquidity injections carried out by central banks in the past year, along with government stimulus spending, will lead to a prodigious rise in CPIs.
This debate remains a priority in our macroeconomic scenario, since its outcome will have a big impact on the asset allocation process, not just in terms of the fundamental choice between equities and bonds, but also in sector preferences and the so-called peripheral markets (currencies, commodities, real estate, etc.).
[snip]
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.