Saturday, March 21, 2015

Fake Wealth. Has No Natural Buyer

The Atlas-like job destroyers will find that out the hard way, when this all collapses like a cheap tent.

"The vulnerabilities of developing and emerging economies have been heightened by weaknesses in the international financial architecture. It was hoped that the global financial crisis would give rise to sufficient political motivation and intellectual strength to address these weaknesses in a more determined manner. But efforts in this direction, have been stymied by pressures from global financial interests"

"Such monetary injections fuelled asset appreciations not only in the United States and the United Kingdom, as discussed above, but also in many other stock markets, as measured by the MSCI global index. Between mid-2010 and the last quarter of 2013, that global index more than doubled, while real economic activity remained subdued. But in some cases, as can be observed by stock market reactions to releases of employment data in the United States and elsewhere, good news on economic activity triggered a fall in the stock market, reflecting the anxiety of speculators about reversals of the liquidity expansion if economic activity and favourable employment conditions were to resume. "