BUSINESS
Rising debts are a danger despite low service costs - Economo
BUSINESS

Rising debts are a danger despite low service costs - Economo

Published: July 8, 2020  |  5 min read, 962 words
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An innocent explanation for the tremendous rebound in global stock markets in the second quarter was that investors concluded that the worst of the pandemic was over and that the recovery was on the way.A less innocent – but plausible – alternative interpretation is that investors now believe that central banks will exercise full control over asset prices in the foreseeable future. In other words, the strong imperative of regulators doing “what is necessary” to deal with the current crisis could ensure a lasting separation of stock prices from ailing economies.Support for this second view... READ MORE
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