Trembling 
but inactive hands in the ECB seem to secretly wish for a rate hike to 4% in the June meeting, to curtail galloping money supply that keeps its range solidly in double digits or far above the ECB’s own target rate of 4.5% for money supply M3.
ECB president Jean-Claude Trichet has been preparing the ground with European politicians for a rate hike who fear that higher rates may bring fragile growth to a halt. Now the ECB is challenged by another growing problem. The US dollar is only a split hair away from its all-time lows and a rate hike in Europe could lead to the globally feared sell-off of dollar debt paper, pushing the greenback into uncharted territory.
As fundamentals build a case to sell out while the bull still rages worldwide, having lift ed shares worldwide onto levels that can be explained by easy central bank money but not by their earnings power, investors are left with few choices in order to protect themselves from the massive correction that very much looms on the horizon.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
but inactive hands in the ECB seem to secretly wish for a rate hike to 4% in the June meeting, to curtail galloping money supply that keeps its range solidly in double digits or far above the ECB’s own target rate of 4.5% for money supply M3.ECB president Jean-Claude Trichet has been preparing the ground with European politicians for a rate hike who fear that higher rates may bring fragile growth to a halt. Now the ECB is challenged by another growing problem. The US dollar is only a split hair away from its all-time lows and a rate hike in Europe could lead to the globally feared sell-off of dollar debt paper, pushing the greenback into uncharted territory.
As fundamentals build a case to sell out while the bull still rages worldwide, having lift ed shares worldwide onto levels that can be explained by easy central bank money but not by their earnings power, investors are left with few choices in order to protect themselves from the massive correction that very much looms on the horizon.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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