US

All This Quantitative Easing Is Going To Lead To More Emerging Market Bubbles

Jonathan Tepper of Variant Perception spoke with CNBC today about the state of central banks and what their aims will be to combat the threat of a double dip.

  • 0:40 Central banks prefer inflation over deflation, and will expand their balance sheets, engaging in more quantitative easing.
  • 1:15 The Fed has brought down mortgage rates and the Bank of England is buying corporate bonds.
  • 1:50 There will be more excess liquidity as a result, more money will flow abroad, and inflate emerging market economies, notably in Asia. This could create more bubbles there.

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