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:
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.

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.


Can the stock market handle higher interest rates? Probably not.