The post Deutsche Bank boss calls on ECB to halt cheap money
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is causing housing prices in many markets to overinflate, stock prices to rise and many companies with failing business models to stay afloat by selling junk bonds to investors betting they can collect some quick returns and sell out before those businesses and bonds fail.
92 ver But rising house prices, fuelled by rush of cheap money
from the Bank of England and Government funding schemes, could derail the recovery.
The first has been the abundance of cheap money
in the last couple of years brought on by loose financial policies that have led investors around the world to search for yield.
Indian markets have been able to ignore negatives last year due to cheap money
flowing in from overseas.
The FLS scheme has seen the Bank pump cheap money
into banks and building societies, with the aim it should be lent to individuals and companies to help stimulate the economy.
This month's cover story addresses the complexities of companies across the world scrambling to refinance $2trn of debt, taken out with cheap money
Providers appear to be funding mortgage lending via the currently cheap money
markets, rather than through their savings products.
and expansive investment kept America from sinking back into depression.
I expect him to introduce a development component so that cheap money
can be obtained for the economy," said Zlatko Kalenikov from the Federation of Economic Chambers.
Consumers are being warned that there will be no return to the era of cheap money
after tough new regulations were drawn up to boost capital reserves held by banks.
But even if they are charging higher premiums (with invoice financing), it's still cheap money
because the base rate is so low.