Alex Weber, former head of Germany’s Bundesbank, and now CEO of UBS has recently warned that Central Bank ‘interventions’ in credit markets are setting the stage for what could easily end sparking catastrophic ‘disturbances’ in global financial markets.
Alex Weber: “The Real Danger in Finance” – ZeroHedge Oct 17, 2016
“They (central banks) have taken on massive interventions in the market, you could almost say that central banks are now the central counterparties in many markets. They are the ultimate buyer…”
“So I think the central bankers need to be very careful that they do not continue to produce disturbances in the markets, which they acknowledge – it’s a known side effect – but the perception that the underlying impact of monetary policy outweighs the potential side effect in my view is starting to be wrong…”
“I don’t think a single trader can tell you what the appropriate price of an asset he buys is, if you take out all this central bank intervention…”
[Investors] now face an unpredictable and unfathomable world….the real danger in finance is … that investors and investment groups will be wiped out by wild price swings from an unexpected political shock…
This is just one banker’s view. But it comes from a man who has been at the centre of the system for decades and is not a natural alarmist. Investors, in other words, would ignore this three-part list at their peril. So would Weber’s former colleagues — at central banks. read more here…
This is a critical period in global finance, with market pricing distortions spearheaded by Central Bank interventions in major financial markets.
It is time to reset the dynamics with a citizen-centered economic acceleration plan, a true, power-house economic plan that eliminates debt at ground level and restores economic liberty.
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