World News Insights
1-3 Minute Gist

All Topics Article

Squaring the circle

Economist Original article ›

Keywords:

LyrArc Article Gist
The asset bubble may be due to the huge infusion of liquidity in the economy. This inflates the value of financial wealth in stocks relative to real wealth in goods and services and businesses that produce them. Industrial production is down but stock prices are up. This leads to distortions that can show up elsewhere such as in the currency markets with depreciating dollar or in the stimulus being withdrawn too early.

A Federal Reserve sponsored bull market in the U.S.

09/24/2009

With quantitative easing (QE), the Fed creating money to buy Treasury bonds at a fast pace, and with inflation "exceptionally low" in the Fed's words, there is considerable liquidity to support the surge in stocks. But this could change quickly. Investors would benefit from caution.

Grouped Articles

Dow Closes Above 15000

Wall Street Journal 05/08/2013

Gross Sees Treasurys' Top

Wall Street Journal 05/11/2013

Stockmarkets: Don’t worry, be happy

Economist 05/27/2013

U.S. Treasurys Get Battered

Wall Street Journal 05/29/2013

Is This a Bubble?

Wall Street Journal 11/17/2013

An About-Face for the Stock Market’s 5-Year Return

New York Times 02/15/2014

Exit strategy dilemma for economic policymakers in the U.S. and Europe after fiscal stimulus and loose monetary policy.

11/05/2009

Grouped Articles

Once Again, the Fed Shies Away From the Exit Door

Wall Street Journal 07/11/2013

Exit, followed by a bear

Economist 11/05/2009

Squaring the circle

Economist 11/13/2009

Why a Fed Rate Hike May Be Delayed

BusinessWeek 04/28/2011

Draghi Urges 'Growth Pact'

Wall Street Journal 04/26/2012

John B. Taylor: Monetary Policy and the Next Crisis

Wall Street Journal 07/04/2012


Support LyrArc

We took a different way to help millions around the world build educated informed mindsets that affects and shapes their lives. For a future that is open, global and digital, with everyone having access to high quality information. We believe in the renewal of America, renewal of Europe, the renewal of India, the rest of Asia, Latin America and Africa. The renewal of our supply chains, health, education, infrastructure, as we rebuild our countries after the pandemic. Literacy and knowledge we believe cannot thrive and grow in a world of web bots, web crawlers, or AI. This requires human curiosity, human learning, and human imagination. We take as inspiration the saying- “One has to be free, and as broad as sky. One has to have a mind that is crystal clear, only then can truth shine in it.” Every contribution whether big or small is precious- in this crisis and ahead.

Support Lyrarc from as small as $1


Copyright © 2006 - 2026 Intelilinks LLC
Terms and Conditions | Copyright Policy | Privacy Policy | Contact Us