Financial markets are afloat on an "artificial sea of liquidity" thanks to central bank easing, but eventually the sea will dry up and the result won't be pretty, says star investor Jim Rogers, chairman of Rogers Holdings.
Policymakers "everywhere are under no constraint," Rogers told New York Markets Live online radio. Central banks can print as much as they want; the governments spend as much as they want. So there's no reason this can't go on for a while, because any corrections due to tapering will probably be temporary."
If markets correct in reaction to a Federal Reserve tapering of its quantitative easing, as Rogers expects, the Fed will simply restart its easing, he says.
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1 comment:
they call this pumping the system or stimulus. the result has not been good in the past ever, yet we keep doing it
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