"I put it on the growing list of things that are suggesting that the Fed is pondering a change in direction. If there are any tea leaves in the analysis, they would read that QE is going to be ending pretty soon."
It will keep grinding down the productive economies until it is dealt with (i.e. dismantled).
"The World Economic Forum's annual meeting broke up on Saturday night amid warnings that attendees were too relaxed and optimistic about the state of the global economy."
How Iceland Overthrew The Banks: The Only 3 Minutes of Any Worth from Davos:
“Why do we consider banks to be like holy churches?” is the rhetorical question that Iceland’s President Olafur Ragnar Grimson asks (and answers) in this truly epic three minutes of truthiness from the farce that is the World Economic Forum in Davos. Amid a week of back-slapping and self-congratulatory party-outdoing, as John Aziz notes, the Icelandic President explains why his nation is growing strongly, why unemployment is negligible, and how they moved from the world’s poster-child for banking crisis 5 years ago to a thriving nation once again. Simply put, he says, “we didn’t follow the prevailing orthodoxies of the last 30 years in the Western world.” There are lessons here for everyone - as Grimson explains the process of creative destruction that remains much needed in Western economies - though we suspect his holographic pass for next year’s Swiss fun will be reneged...