Stock markets keep inching higher and people probably start thinking that nothing can bring them down. Real volatility has also dropped to new all time lows. That’s strange because there is unusual uncertainty on the horizon already. The US Fed has announced that it will start unwinding its decade old QE programs and that’s something… Continue reading Quantitative squeezing – what you need to know
Tag: QE
Paradoxical effects in the economy
We got a few down days early in the week, but still ended with new record highs on a number of indexes. Even the German DAX is clocking in new records. As I said last week, pullbacks can be very shallow as long as enough investors are looking for a chance to get back in.… Continue reading Paradoxical effects in the economy
Why QE fails to start the economic engine
I get occasional questions about the quantitative easing (QE) programs that are being perpetuated by the world’s central bankers. Will it work? When? The idea of QE is to add some extra money-fuel to start the economic motor. This is really no different from priming an engine before you start it in cold weather. If… Continue reading Why QE fails to start the economic engine
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