The Bank for International Settlements — the Swiss-based financial institution that acts as a counterparty to national central banks — has declared that stock markets are in a "euphoric" state and has urged central banks globally to begin tightening interest-rate policies now while economies are growing rather than wait for another recession, when it will be too late.Can the stock market handle higher interest rates? Probably not.
Those are scary words coming from a set of economists whose job it is to monitor how capable central banks are of responding to economic conditions with flexible monetary policy.
Monday, June 30, 2014
Central Bank Analysts Say Stocks Are In 'Euphoric' Territory And We're Screwed When The Recession Hits
The Business Insider reports: