Tag Archives: Itlay

Economic look

11 Feb

imagesRisk trends collapsed in 2000 and 2007 although the foundations were perceived as excellent, with economic growth (speculative) in the U.S. and Europe. Current trend is not a creation of wealth  (everybody get a loan) or expectations in this regard but the creation of  coordinated central bank interventions. Creation of paper money out of thin air led this to historically low interest rate levels forcing investors to protect themselves from negative real interest rates and seek higher returns in safety and risk assets (stocks, commodities, currencies like NZD, EUR, GBP, CAD which tend to appreciate in periods of optimism, against  USD, JPY, CHF, which is appreciated in times of panic). Continue reading

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