Posted on 07/02/2014 7:29:42 AM PDT by SeekAndFind
And you thought that last global financial crisis was bad.
A report issued on Sunday by the Bank for International Settlements (BIS) warns that policymakers have failed to address the root problems that caused the 2007-2008 financial meltdown. Instead of taking a long-term perspective aimed at increasing real economic productivity and output — the kind that actually benefits people by raising living standards — government officials have sought to pump up the numbers through monetary and fiscal stimulus.
As a result, we now have an alarming disconnect between the performance of global equity markets, which are booming, and an underlying world economy that is merely limping along. While major stock exchanges around the world have experienced spectacular returns — Standard & Poor's 500 Index went up 30 percent last year — real-world economic growth came in at a meager 3 percent for the first quarter of 2014.
The BIS annual report packs a punch because the organization behind it commands the respect of the world's central bankers. Based in Basel, Switzerland, the BIS is essentially the bank for central banks; it serves as a hub for gathering and analyzing the data provided by its 58 member central banks and performs in-depth research leading to broad policy recommendations.
When the BIS chastises policymakers for masking structural deficiencies and long-run misallocations of economic resources by resorting to the quick monetary fixes of quantitative easing and zero-interest rates — well, it should get their attention. And when the report suggests that short-term policy responses to the last crisis may be "creating a bigger one down the road," the red lights should start flashing.
Is Federal Reserve Chair Janet Yellen taking note?
(Excerpt) Read more at thehill.com ...
If the fed wants a meltdown they can make it happen again like they did in the Great Depression.
I don’t think they will be able to control it.
I do think the first words out of zer0s mouth will be someone else’s fault
There is always a financial meltdown on the horizon.
What matters is the policies that either bring it or avoid it. Our current rulers want one and this is key here, while they are in power.
Never let a crisis go to waste.
Be vigilant.
If we all are out of work, we have time to fight full time.
I love the way they spin like its so good now but a meltdown is on the way. It sucks now.
Oh NOW they tell us, when it was obvious what they planned to do back in 2009. Why let them pump for 5 years before letting everybody know.
This is news? This is obvious.
Thanks for posting what we all know. It does confirm. It is just funny thatvit reads like breaking news when we all know that all QE did was blow a big temporary bubble that will just be worse than 2008 when it finally pops, because the deleveraging will have to be even deeper.
The fed wants to print more money? Give it to people who've been ruined by the pro-elite bailouts.
The question is not what to do to avoid the crash, because whatever it is isn’t going to happen. The question is how best to prepare for it.
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