Salient to Investors: Richard Koo at Nomura Research Institute said: The Fed should start tapering as soon as possible to prevent a premature rise in interest rates under tapering. A December tapering would be beneficial for both Bernanke and Yellen. Bernanke began talking about tapering in May because he wanted
READ MORE... →Salient to Investors: Richard Koo at Nomura Research Institute said: Abenomics is finally addressing Japan’s fundamental economic problem: getting households and businesses to borrow. In this balance-sheet recession, consumers preferred to aggressively pay down debt instead of spending following the burst of the asset price bubble in the early 1990s. Companies
READ MORE... →Salient to Investors: Richard Koo at Nomura said: Mini-bubbles can occur during a balance sheet recession, like this one. Not yet seeing a big bubble, but concerned about mini bubbles. In a monetary policy-driven market, money created by an accommodative central bank typically spreads throughout the economy and lifts markets. During
READ MORE... →Salient to Investors: Caroline Baum writes: Health-care spending has collapsed in most developed nations, not just the US. But as more people get health insurance, the demand for medical care will go up, and with it the price. If Fed talk of tapering was enough to send 10-yr Treasury yields
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