Warning To All Investors: Bundesbank’s Weber, JPMorgan’s Dimon, Roubini Warn About Global Easing. BofA Warns Of 1987 And 1994 Scenarios. Yale’s Shiller Sees Housing Market Have Further to Drop. Bill Gross Is Scaling Back On Derivatives On Incoming Inflation. US GDP “Growth” Since The “Recovery” Is Now The Worst In US History
January 24th, 2013
Bundesbank’s Weber, JPMorgan’s Dimon Warn About Global Easing
The central bankers who saved the world economy are now being told they risk hurting it.
Even as the International Monetary Fund cuts its global growth outlook, a flood of stimulus is running into criticism at the World Economic Forum’s annual meeting in Davos. Among the concerns: so-called quantitative easing is fanning complacency among governments and households, fueling the risk of a race to devalue currencies and leading to asset bubbles.
“Central banks can buy time, but they cannot fix issues long-term,” former Bundesbank President Axel Weber, now chairman of UBS AG, said in the Swiss ski resort. “There’s a perception that they are the only game in town.”
Quantitative easing “is one of the greatest monetary experiments of all time, they’ll be writing books about it for a thousand years,” said JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon, who is also in Davos.
Warnings about a new money glut are not going unheeded. U.S. Federal Reserve Chairman Ben S. Bernanke said Jan. 14 that officials must “pay very close attention to the costs and the risks” of emergency stimulus. Bank of England Governor Mervyn King said last week “the search for yield appears to be beginning again.”
Roubini: QE ‘Zombies’ Are Coming to a Town Near You