Why Global Equity Managers Are Soiling Their Nappies---Fear That Central Banks Will Stop Buying Assets

Despite growing evidence that negative interest rates are injurious to economic growth, housing affordability and employment, among other things, economists at the various central banks persist in calling for more of the same bad medicine.  How many times must we hear central bankers express “surprise” that inflation remains low when they are busily transferring resources from private savers to public sector debtors?

The only people who seem to be in favor of a resumption of asset purchases (aka quantitative easing or “QE”) are increasingly worried equity managers.  Writing in the Financial Times over the weekend, Merryn Somerset Webb, editor in chief of MoneyWeek, boldly chastises BlackRock (BLK) executives for suggesting that the ECB should start to buy equities.









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