The virtual economy heats up, optimistic sentiment rises, the Federal Reserve (Fed) begins to hike rates, and the market beats the drum for relaxed regulations. Isn’t this exactly what was happening before a subprime mortgage crisis broke out ten years ago?
Ten years have elapsed, and analysts are worrying about whether another crisis is in the works in Wall Street and whether the world can handle it better.
GREED OF WALL STREET RETURNS
“Greed is a powerful force. We are trying not to forget that,” Andrew Sheets, a credit strategist at Morgan Stanley, wrote in a recent note, comparing the current market situation to the early days of 2007 and warning of a resurgence of greed.
Since Donald Trump won the presidential election on Nov. 8, the U.S. stock market has been hitting a record high, with the S&P 500 rising nearly 9.3 percent.
Wall Street analysts believe that the current behavior of U.S. stocks, instead of mirroring the real economy, is a “wager” on the Trump administration’s new moves like tax cuts, spending hikes and relaxed regulations…
Read more : Xinhuanet, 15.02.2017