Thursday, November 27, 2014

Bundesbank Warns of Excessive Risk Taking from Low Interest Rates

More example of what  I call as 
...global political or mainstream institutions or establishments, CANNOT deny the existence of bubbles anymore. So their recourse has been to either downplay on the risks or put an escape clause to exonerate them when risks transforms into reality
Well, it appears that Germany's central bank, the Bundesbank, has joined the chorus
 
From the Economic Times:
Low interest rates are prompting investors to take too many risks in some asset classes, the German central bank or Bundesbank warned Tuesday.

"There are incentives for investors to engage in riskier behaviour in the current low-interest-rate environment," Bundesbank deputy president Claudia Buch told a news conference on the presentation of the German central bank's annual financial stability report.
If in case one hasn’t noticed, these sort of admonitions from international political agencies have become quite too frequent. 

Why?

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