One of the defining characteristics of an asset bubble is that most professional money men know one when they see one, but on the “greater fool theory” – the belief that when making a questionable investment there is always some idiot willing to pay even more – are very reluctant to leave it.
George Osborne should borrow as much as £10bn extra this year for infrastructure spending and business tax cuts to make sure Britain’s “nascent” recovery takes hold, the International Monetary Fund has suggested.
The Government’s Help-to-Buy cheap loans scheme may turn out to be counterproductive by fuelling a house price bubble that locks potential buyers out of the market, the International Monetary Fund has warned.
Markets surged to record highs on Wednesday as US Federal Reserve chairman Ben Bernanke said it would not slam the breaks on quantitative easing, but quickly fell back again amid fears it could rein in the artificial stimulus within the next few months.
Markets surged to record highs on Wednesday, as US Federal Reserve chairman Ben Bernanke said it would not slam the brakes on quantitative easing any time soon, but they quickly fell back again mid fears that it may start tapering later this year.
The stock of capital flowing into emerging markets has doubled from $4 trillion to $8 trillion since the Lehman Crisis, chasing a catch-up growth story that looks tired and has largely sputtered out in Brazil, Russia and South Africa.