“King of Bond” Mr. Bill Gross was warning the market players for a long time about the extended monetary easing and the danger hidden in it. earlier in this month, the famous money manager “Central bank of Casino”, along with the Janus Capital also have wrote that the monetary is printing money endlessly, just like the way people manufacture chips. They have added that there won’t be any running down in case of chips, but the gamblers will have to go home eventually and have to keep their doors closed.
Federal Reserve’s move of global economy
Federal Reserve has already cut down the interest rates to be zero bound in the year 2008. By the same time, they have also started to do quantitative easing. The quantitative easing is a policy by which the market will be supplied with money that was created newly. This move of the Federal Reserve has definitely made the global economy to recover. It has combined 4 trillion Yuan in the current stimulus civility of China. Though the move of Federal Reserve has brought recovery of global economy, it has also brought an equally unparalleled crisis to the markets.
It was exactly seven years back from now that the Federal Reserve has reversed the interest rates to be zero bound and has started to do quantitative easing. But the quantitative easing was brought back by the Federal Reserve in the year 2014 by the month of October. The loose money era has really become a worrying thing for the US economy but it really helped to strengthen it. By this time, the Fed Chair Ms. Janet Yellen wanted to ease up the Quantitative easing. The Auto market of US will get its real strength only when the stimulus of easy money is wear off, said the marketers.
Yellen has commented on the ease of QE
Yellen has recently met the reporters and have discussed on the US economy. She told that she has a great confidence towards the fundamentals of the US economy. She was questioned about the global economy by the reporters. The question was that whether the global economy will have a slower pace to get recovered just like the US economy faces now. During the year 2004-2005, the Fed was tightening and the growth of the global market also got hummed. It was around 5% in the real terms. Get update more information about IPO Visit Here.
In the past 7 years, the total debt all around the world alone has raised from 50 trillion dollars to 240 trillion dollars. This definitely shows how weak the global economy is. The marketers and economists have told that the new policies of economies all around the world now is expected to bring good sign for the world economy soon. The slow down of the growing market and the market emergence will definitely precipitate the economic crisis now, said the economists. Soon there can be some major changes happening in the world market. . For more details on latest IPO happenings, please follow us at https://twitter.com/financetradingn