Economist Nouriel Roubini of
NYU’s Stern School of Business tells The Daily Ticker that it’s not only
monetary stimulus by the Fed that’s been driving stocks higher but also
“more unconventional monetary policy” from the ECB, Bank of Japan, Bank
of England and the Swiss National Bank. That stimulus is aimed at
boosting economic growth and it may have helped, but the global economy
is slowing.
In the fourth quarter, the major economies of the U.S., U.K, Japan
and the Eurozone all contracted and they could slow even more because of
spending cuts, says Roubini. “The core of the Eurozone has to do it,
the U.S. has to do it…and when you have synchronized fiscal contraction
the negative effects on economic growth are worse." - in Yahoo Finance
