Edward Hadas from Breakingviews argues that as QE ends in the U.S., investors are looking in anguish at the alarming stall in the real economy.
So the era of free and ultra cheap money is already helping anymore and said markets seem to be looking. Of the alarming to stall in the real economy this is not the latest quite gloomy piece from -- pat Massey joins in this year now I'm. The so that's it that is there it is all over -- although. Or maybe a bit extreme history is not ended yet but we seem to be going to rather gloomy patch. Guess as -- as this he said I'm curious -- mean the Europeans are just starting a little bit Japan's going strong but. But really matters to investors still as the US and their curious over and in fact in rates might rise. And that's because the US economy is strong but look around the world relatively strong last week let's say look around the world thinks the looks are great you know. China slow weighing in Europe it's in a stall action here. Russia as a mass. Brazil -- and you notice that are lower commodity prices. Lots -- candy and meet you know that the what's happening now before in the equity markets. It yields on the -- monitored China histories from -- fits with the theory. Com. What happens Edward a week or two weeks from now when we get some pretty decent -- to race and yes a pretty decent US states and equity markets bounce on this what what are we talk about -- -- in this union. Well and you come and call me and say how's your mom doing now serve. But I don't. I don't actually think we are gonna get the good German data we've had the the US data does seem to be improving in that could could well be good news. Or seeing here is a lot of weakness in. Pretty much every economy even places that have been quite strong even the UK in manufacturing construction data hasn't been very good. And it's potentially distinctive is that China where a lot of people myself included we're feeling that the Chinese Government would be able to you. And junior quite soft landing and that's what we seem to have now is a lot of problems -- housing market there in the government rather lost to us what to do. The same thing to say in India. Where there's been a lot of optimism about Moody's new government and that's been fading. So what we're seeing is just a lot of individual stories. All which almost all of which are our. And it and I see -- -- fortress. What what what US and the psychology of the markets and you know that is what you hear it. -- you say eight foreign QE Cummings grand in the US it's only just beginning in Europe but the safety net is not enough anymore the market is now. Much more focused on what's going on in the -- yes exactly I think that it. You have this very pleasant period the sort of long drug induced monetary drugs and of addiction and you just people -- having what's created that shift that's -- -- that what what what was made the markets for a couple of well I do think that the largely it is the end is that the USQ and I can't -- you have this that the main source in the kind of -- comfort of the investors. Is looking at the US -- and even the young still pretty dovish. The basic feel is this the good sort of unbelievably good time for financial markets has basically come to an end. You'll you'll climb in the piece the names of the post QB period could be that depressing each. How long the depressing is gonna condone what QE was five years. What's -- what we have double in the could be due. You have got to come back to this resentment thank you very much indeed at -- Paris after breaking news you can read that piece. -- on the breaking news website the US shows a twelve birdies in seventeen -- CBS. T has London time IMAX Acropolis is righteous.