Zurich (AFP) – Loose monetary policies have created an “illusion of permanent liquidity” that is spurring investors to make risky bets and push up asset prices, the Bank for International Settlements said Sunday.”The longer the music plays and the louder it gets, the more deafening is the silence that follows,” Claudio Borio, who heads the BIS’s monetary and economic unit, told reporters.”Markets will not be liquid when that liquidity is needed most,” he warned, urging “sound prudential policies (and) extra prudence on the part of market participants themselves”.Many central banks have kept their rates at record lows and pumped their …read more
Source: Business Insider
