What will happen to markets when QE ends? | FT – Gavyn Davies

dralfoldman:

Looking back, this is worth a read. It’s one of my most popular blogs.

Originally posted on Dr Alf's Blog:

Bank of England

Bank of England (Photo credit: Wikipedia)

This is an excellent article from the respected macro-economist, Gavyn Davies, writing in his FT blog. If you are financially literate, it is well worth a read. Check it out!

via What will happen to markets when QE ends? | Gavyn Davies.

My simple conclusion from reading the article is that we should not necessarily expect markets to crash when QE ends (quantitative easing); there will obviously be a period of adjustment as highlighted by Mervyn King, outgoing head of the Bank of England. However, in my view, by the time QE ends, economic fundamentals will be on a stronger footing. This is good news.

Hopefully, major corporations will start to invest some of their piles of cash soon? When big corporations start investing in major capital spending and acquisitions, it will filter through the economic food chain…

View original 267 more words

Germany needs to fix its economic model – Editorial – FT.com

This editorial from the FT is well worth a read. Check it out!

via Germany needs to fix its economic model – FT.com.

The article recognizes that the German economy has run into some difficulties recently and makes some excellent suggestions for improvement.

Thoughts?


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