Yak
Resident Philosopher
Joined : 10 Dec 2007
Posts : 731
Location : Yaksylvania
 |  Subject: From Bad to Wor$e  Sun Jun 29, 2008 7:40 am | |
| | Ambrose Evans-Pritchard wrote: | Barclays Capital has advised clients to batten down the hatches for a worldwide financial storm, warning that the US Federal Reserve has allowed the inflation genie out of the bottle and let its credibility fall "below zero".
"We're in a nasty environment," said Tim Bond, the bank's chief equity strategist. "There is an inflation shock underway. This is going to be very negative for financial assets. We are going into tortoise mood and are retreating into our shell. Investors will do well if they can preserve their wealth."
Barclays Capital said in its closely-watched Global Outlook that US headline inflation would hit 5.5pc by August and the Fed will have to raise interest rates six times by the end of next year to prevent a wage-spiral. If it hesitates, the bond markets will take matters into their own hands. "This is the first test for central banks in 30 years and they have fluffed it. They have zero credibility, and the Fed is negative if that's possible. It has lost all credibility," said Mr Bond. |
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/27/cnbarclays127.xml
_________________
All the old cliches are true.
That's why they're cliches. |
|
Home 
Chat 
Calendar 
FAQ 
Search 
Register 
Log in 
