From the FT this afternoon:
I'd refer you to my blog from this morning for elaboration of my thinking.
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Speculators’ paradise (shares and real estate. The stock market is not part of the real economy, but land IS.
You can’t help but wonder whether stopping QE will cause stock markets and properties to collapse. If the value of these assets underpin derivatives, then is a derivative time bomb ticking?
” is a derivative time bomb ticking”
Yes.
Since “derivatives” are some 15-20 times the global GDP (derivatives = $1.2 quadrillion +-) (a quadrillion is one trillion X 1000)
We can expect bad news soon, and plenty coming after that.