Monday, August 31, 2009

Terrifying bubbles

When Bubbles Burst
John P. Calverley
( )

Easy to win elections during bubble periods

While many central bankers are cautious about targeting asset prices, some have been terrified even of drawing attention to bubbles, finds John P. Calverley. “They fear that the markets will one day sell off sharply and they don’t want to encourage that, either as a committee or as individuals. Instead, they are inclined to cross their fingers, hoping that perhaps the market does know something they don’t or that it will deflate quietly in that usually el usive ‘soft landing,’” writes Calverley in When Bubbles Burst: Surviving the Financial Fallout.


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