Friday, September 16, 2011

Market volatility is a Consequence of Zero Interest Rate

Marc Faber : ( Stock Market volatility ) well I do not think it is a sign of a healthy market but it's let's say a Consequence of Zero Interest Rate , I have argued for years that the Federal Reserve with its artificial low interest rate instead of creating monetary and economic stability has created more instability by creating the NASDQ bubble the housing bubble the commodities bubble and now creating a giant government debt bubble and so we are going to have a lot of volatility every year for the next few years where markets will go up and down for at least thirty percent per anum and I think in real terms , inflation adjusted terms it will not make much headways - in Yahoo Finance

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