What we are seeing is the bursting of yet another bubble, a bubble whose seeds were sown ironically, by the response of central banks to the bursting of the last bubble the tech bubble.
In the aftermath, central banks took interest rates to multi-generational lows, and subsequently countries running current account surpluses û in Asia, Russia and the Middle East û flooded the world with liquidity, out of a desire to stop their currencies from appreciating. As a result of actions by central banks both in the developed world and the developing world, you saw...
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