{"id":25259,"date":"2017-09-06T07:51:49","date_gmt":"2017-09-06T12:51:49","guid":{"rendered":"http:\/\/olduvai.ca\/?p=25259"},"modified":"2017-09-06T07:51:49","modified_gmt":"2017-09-06T12:51:49","slug":"were-now-seeing-bubbles-everywhere-deutsche-bank-boss-urges-end-to-era-of-cheap-money","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=25259","title":{"rendered":"“We’re Now Seeing Bubbles Everywhere” – Deutsche Bank Boss Urges End To “Era Of Cheap Money”"},"content":{"rendered":"

“We’re Now Seeing Bubbles Everywhere” – Deutsche Bank Boss Urges End To “Era Of Cheap Money”<\/a><\/h3>\n
\n
\n

The head of Germany\u2019s largest commercial bank warned of the fallout from cheap money, cautioning against using the strong euro as a justification for printing more<\/strong>.<\/p>\n

<\/a><\/p>\n

Bloomberg reports that the Deutsche Bank\u00a0Chief Executive Officer\u00a0John Cryan\u00a0called for an end to the era of cheap money in Europe, saying that the prolonged period of rock-bottom interest rates is starting to inflate asset bubbles and putting the bank at a disadvantage to U.S. rivals<\/strong>.<\/p>\n

\n
\u201cWe are now seeing signs of bubbles in more and more parts of the capital market where we wouldn\u2019t have expected them,” <\/strong>Cryan said, adding that the interest-rate policy has been partly responsible for the decline in earnings at European banks.<\/div>\n

\u201cI welcome the recent announcement by the\u00a0Federal Reserve\u00a0and now also from the ECB that they intend to gradually bring their loose monetary policy to an end.\u201d<\/p>\n<\/blockquote>\n

Low interest rates, money printing and a penalty charge for hoarding cash<\/strong> have been at the heart of attempts by the central bank to reinvigorate the 19-country euro zone economy in the wake of the 2008-09 financial crisis.<\/p>\n

\"\"<\/p>\n

Reuters reports<\/a> Cryan told a room full of bankers in Frankfurt on Wednesday, a day before the ECB\u2019s governors meet to discuss policy, that:<\/p>\n

\n

“the era of cheap money in Europe should come to an end – despite the strong euro.”<\/em><\/strong><\/p>\n<\/blockquote>\n

Cryan also explained how ECB policy (relative to The Fed) has disadvantaged European banks…<\/p>\n

\n

\u201cU.S. banks enjoy a competitive advantage due to the local interest rate environment,\u201d<\/strong> Cryan said.<\/p>\n<\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

“We’re Now Seeing Bubbles Everywhere” – Deutsche Bank Boss Urges End To “Era Of Cheap Money” The head of Germany\u2019s largest commercial bank warned of the fallout from cheap money, cautioning against using the strong euro as a justification for printing more. Bloomberg reports that the Deutsche Bank\u00a0Chief Executive Officer\u00a0John Cryan\u00a0called for an end to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1799,15888,1839,4896,281,359,15887,4318],"class_list":["post-25259","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bubbles","tag-cheap-money","tag-deutsche-bank","tag-easy-money","tag-europe","tag-germany","tag-john-crayon","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25259","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25259"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25259\/revisions"}],"predecessor-version":[{"id":25260,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25259\/revisions\/25260"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}