2 ms·
Feel free to evaluate the face value of the comment, but in general it feels a odd that one nation's central bank is commenting on valuation of a particular st
by dv_dt 3y ago
Feel free to evaluate the face value of the comment, but in general it feels a odd that one nation's central bank is commenting on valuation of a particular stock sector of another nation. Did our central bank impugn the value of the
British financial markets due to Brexit?
- pixl97 3y agoHonestly this doesn't seem very weird at all. Central banks commonly warn when they see uncertainty in areas where large amounts of money are being invested because it also threatens their own stability. Or did you forget when the 2008 (US) housing crisis spread world wide?
- dv_dt 3y agoThat particular crisis was missed by just about every central bank until it collapsed. It was due to the leverage being hidden behind traditionally solid assets. That kind of surprise collapse today is unlikely with tech stocks - that is already known and widely planned for volatility. What has not been planned for is possible collapse of commercial real estate valuations which did not anticipate much volatility. The whole game of increasing interest rates is to increase the strain gradually to slow and hopefully not collapse portions of the economy. But we will see as the entire world seems to be more wobbly operating on entrenched assumptions.
- darkclouds 3y ago[dead]