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Why stoke an emerging bubble with still cheaper money?
Even without the financial seizure, the case for cheaper money was becoming abundantly clear.
Today central bankers have little room to offset budgetary austerity with cheaper money.
But cheaper money alone does not create demand or stir recovery.
And it hopes that cheaper money will ease that recapitalisation, inject confidence and cushion the broader economy.
To markets, it says risk-takers will not be bailed out by cheaper money when the going gets tough.
Similar(6)
That creates a perverse situation: The more expensive the underlying assets get, the cheaper money-manager stocks look relative to earnings growth.
Cheap money allowed the building of suburbia.
There had been too much cheap money.
The cheap money era is over".
He could have said the same about cheap money.
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