The Root Cause
http://www.financialexpress.com/fe_full_story.php?content_id=107551
Untimately the unsustainable asset price bubbles and credit binges have one root cause...money supply. The monetary expansion we have all experienced in the last ten years has been championed by the US Federal Reserve and its dollar printing excesses.
In the last five years this expansion has become frenzied. A world awash will excess liquidity (cheap money) is everywhere I look, from bargain basement rates on massive debt tranches in infrastructure financings to being pestered to take out a home loan when I enter the local bank branch.
The linked article is a nice succinct piece that gets straight to the core issues.
Untimately the unsustainable asset price bubbles and credit binges have one root cause...money supply. The monetary expansion we have all experienced in the last ten years has been championed by the US Federal Reserve and its dollar printing excesses.
In the last five years this expansion has become frenzied. A world awash will excess liquidity (cheap money) is everywhere I look, from bargain basement rates on massive debt tranches in infrastructure financings to being pestered to take out a home loan when I enter the local bank branch.
The linked article is a nice succinct piece that gets straight to the core issues.
posted by Peter at 3:13 pm
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