June 29, 2014 / Market exuberance out of touch wit
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Posted On: 06/29/2014 6:35:01 PM
June 29, 2014 / Market exuberance out of touch with frail economy: BIS
http://www.marketwatch.com/story/market-exube...=MW_Nav_MA
By Ben Eisen
NEW YORK (MarketWatch) -- Robust global markets are masking signs of economic fragility, according to a report released by the Bank for International Settlements on Sunday. The coalition of central banks warned that, "despite the euphoria in financial markets, investment remains weak. Instead of adding to productive capacity, large firms prefer to buy back shares or engage in mergers and acquisitions." The BIS, which has in the past been skeptical of easy-money central bank policies, suggested that highly accommodative banks like the Federal Reserve should be mindful about how they normalize monetary policy, adding that "the exit is unlikely to be smooth" for financial markets.
http://www.marketwatch.com/story/market-exube...=MW_Nav_MA
By Ben Eisen
NEW YORK (MarketWatch) -- Robust global markets are masking signs of economic fragility, according to a report released by the Bank for International Settlements on Sunday. The coalition of central banks warned that, "despite the euphoria in financial markets, investment remains weak. Instead of adding to productive capacity, large firms prefer to buy back shares or engage in mergers and acquisitions." The BIS, which has in the past been skeptical of easy-money central bank policies, suggested that highly accommodative banks like the Federal Reserve should be mindful about how they normalize monetary policy, adding that "the exit is unlikely to be smooth" for financial markets.
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