US FED Could Trigger The Next Global Financial Market Crisis!

US FED’s highly accommodating monetary policy with almost zero interest rates is causing concern amongst a number of market analysts. That includes Stephen Roach who is warning that FED’s highly accomodative monetary policy could trigger the next global financial crisis. With FED printing more US Dollar technically known as Quantitative Easing or QE, it’s balance sheet is ballooning and Stephen Roach says that it just doesn’t signal the markets that the FED is interested in financial stability.Roach’s fears echoed those of U.S. billionaire Wilbur Ross, who warned that ultra-easy monetary by major central banks had created the “ultimate bubble” in sovereign debt.

Federal Reserve is being accused of creating a bubble by a lot of people that includes such luminaries like Bill Gates Karl Ichan etc. Federal Reserve has been pumping the economy with cheap money. All this money instead of helping the economy has gone into the stock market and raised stock prices. Watch the video below in which Bill Gates thinks Federal Reserve is creating an asset bubble.

Now this video was made 1 year ago. Federal Reserve has finally decided to increase interest rates. 3 more rate increases are planned for 2017. So the bubble may get burst in 2017. Watch the video below in which Karl Ichan thinks the Federal Reserve is creating a bubble economy.

Now after watching the above video, you can make your own views. Bubbles get created. When these bubble burst, it bring pain to many people who lose their savings. As an investor you should be always watchful of what is happening in the market. Savvy investors were able to survive the stock market crash of 2008. Why? They keenly followed what was happening in the market. When they saw the warning signs, they took safety measures. Did you read the post AUD/USD will not reach parity this year?