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  • Bubble Stage Of This Bull Market May Be Nigh [View article]
    Thanks ! James, for another penetrating article !
    The low interest rate falling further behind inflation, even trespassing negative territory as envisaged by ECB is becoming the paradigm for aging demographics burdened with escalating debt for all developed economies. Excessive liquidity with low interest rate, penalizing savers to pay the bills is the few "permanent" landscapes left to finance promising high growth high risk ventures and welfarism with declining demographic dividends worldwide. "Successful" economies will have to forcibly entice able retirees to continue working, quick to snuff out bubbles along the way from declining liquidity preference and increasing transactional velocity "wealth mirages". No ?
    Sep 20, 2014. 01:57 AM | 1 Like Like |Link to Comment
  • A Stock Market Bubble Is Still In The Cards [View article]
    Hi James,
    I have always enjoyed reading your article, penetrating yet insightful. The recent slight wisp of QE tapering already gotten the market into a tailspin, it's hard to imagine how the system is going to unwound the USD 2T of QE eventually.
    Instead of selling treasuries back to the market by the Federal Reserve, when the economy growth picks up steam which will skyrocket the yields, can the Fed just increase the bank reserve requirement substantially, offering little or no interest in return, the excess liquidity which has been dormant in the bank will then not be unleashed unruly into the market, causing undesired inflationary stress. Of course the banks will complain of missed opputunities, but they had benefited from the Fed engineered low interest soft option too, this is but pay back.. Technically is this feasible ?
    Oct 15, 2013. 01:58 PM | Likes Like |Link to Comment
  • Bill Gross's Misguided Diagnosis Of America's Economic Problems [View article]

    Your articles have always been enlightening, making complex concepts simple, help clearing many confusions expounded by some of the accepted top guns in the industry.
    However a point not debated is the artificially low interest rate distorting world growth in some sectors. It discourages bank loans to businesses as the returns may not commensurate with the expected risk, with banks sitting on huge idling deposits bearing little opportunity cost to offset the unprecedented low interest rate of deposits. This is also true for sovereign loans to southern Europe. The artificially compressed interest rates by myriad financial instruments cause injected capital to be misallocated and a disincentive for economies to change course, instead continue with populist policies, kicking the can down the road.

    Jun 15, 2013. 09:11 AM | 2 Likes Like |Link to Comment