Hong Kong Fed’s Epiphany: Is Bernanke Wrong About Everything?

Tyler Durden
ZeroHedge
12/11/2012

It seems not every nation’s head of central banking believes in the Bernanke Doctrine of moar QE is better QE… Hong Kong Monetary Authority Chief Executive Norman Chan said Monday that quantitative easing is not a panacea, and added:

…there is a possibility that the process of deleveraging is disrupted by quantitative easing, leading to sharp increases in asset prices in the first place. Yet, since such increases are not supported by economic fundamentals, any increase in wealth will be seen as transient(and asset prices might drop sharply and remain volatile). As a result, households are unwilling to increase spending and in the end, the real economy fails to rebound…

…”We should all take precautionary measures and get to the bottom of the problem, learn from others’ experiences and avoid overstretching ourselves. Otherwise, we may find ourselves being trapped in the debt abyss with no way out,” he said.

Read the complete article at ZeroHedge.

 

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