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I personally think central banks are acting a little bit like Dr Jekyll and Mr Hyde. First central banks prop up the interest rate market with cheap interest r
by acd 7y ago
I personally think central banks are acting a little bit like Dr Jekyll and Mr Hyde.
First central banks prop up the interest rate market with cheap interest rates. So there is less and less places to invest for investors to get safe returns.
Then the low interest rates created by central banks drives investors towards riskier investments. Then we get back to square one which was complex financial packaged products likeCDO that we could not predict the risk of.
https://en.wikipedia.org/wiki/Strange_Case_of_Dr_Jekyll_and_Mr_Hyde https://en.wikipedia.org/wiki/Strange_Case_of_Dr_Jekyll_and_...