The head of Germany's largest commercial bank warned of the fallout from cheap money
, cautioning against using the strong euro as a justification for printing more.
Now, however, the equity houses of cards, built on trillions of digital dollars, are not worth the paper they're not printed on and can no longer be supported by cheap money
Thanks to the BSP's move of gradually tightening local monetary policy (through levers like its special deposit accounts, reserve requirements and its key overnight borrowing rate), the local financial system has started to be gradually weaned off cheap money
However, some investors point to a risk that the end of cheap money
could affect smaller US companies.
The irony of a Jewish bank raising cheap money
from Muslim investors shows once again that "money" has no political boundaries.
The era of cheap money
does not seem to be coming to an end just yet.
The Royal Court confiscation hearing was centred around cocaine trafficking evidence between 1991 and 1996, with a covert wiretap supposedly recording Warren bragging of knowing a cheap money
launderer who "cleaned" PS10m/ PS15m a week of his drugs cash being key to the case.
For emerging markets Chinese gloom added more strain, compounding worries over the US turning off the taps on the cheap money
that has been flowing to them.
Emerging economies have benefited from cheap money
as three rounds of Federal Reserve bond-buying pushed capital into their borders in search of higher returns.
It appears that the prospect of the end of cheap money
in the west, with the near certainty of the end of even cheaper money in China, is forcing the cost of capital up across the emerging markets.
3 billion for Corus Steel in 2007, have struggled with acquisitions made in Europe and the United States in the era of cheap money
before the financial crisis.
Wider benefits--for example, banks lending cheap money
to small businesses--haven't materialized, because entrepreneurs are too terrorized by government regulators and a politicized IRS to invest, and the big banks would rather gamble with the money than make honest loans.