Monday, May 20, 2013

Central banks trying to turn water into wine

Central banks are engaged in a hopeless attempt to turn water into wine by persisting with the idea that some form of debt-fueled asset price elevation will lead to real wealth creation, which in turn will fix all our ills.

Real wealth can only be created by innovation and hard work in the private sector, with policymakers, the financial sector and financial markets there to aid and encourage/incentivise.