IMF Admits QE Encourages Excessive Risk-Taking; Warns “Sharp Downside Risks Are Rising”

Thursday, September 18, 2014
By Paul Martin

by Tyler Durden
ZeroHedge.com
09/18/2014

With the Fed unleashing its bubble-watchers last week, on the heels of warnings from the Central Bankers’ Central Bank (BIS), The IMF has decided it is time to chirp in. As Mises’ David Howden notes, after promoting QE for years (see here and here), the IMF is finally coming to realize what has been apparent for years now to almost everyone who doesn’t work for the Fed or the IMF: that low interest rates encourage risky decisions.The IMF warns, “financial market indicators suggested investor bets funded with borrowed money looked ‘excessive’ and that markets could quickly deflate if there were surprises in U.S. monetary policy or the conflicts in Ukraine and the Middle East.”

The Rest…HERE

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