Some very interesting comments by Dr. Roubini.
Unfortunately, this past week the central banks of the world – instead of using their most powerful and effective liquidity hoses – i.e. a reduction in policy rates – have stared at this most dangerous and spreading fire of a global liquidity seizure and decided to continue to use hand-carried and hand-held buckets of water that have proven ineffective before and have been ineffective again as liquidity spread have remained stubbornly high even after these new monetary injections were announced. They will realize in due time that much more effective and radical action – in the form of aggressive reduction in monetary policy rates – may be necessary and warranted. But it looks like they are already behind the curve – most of all the ECB – and what they will do ahead will be too little too late to address a fire that is now spreading without control from country to country.
More on http://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
No comments:
Post a Comment