Central banks to up interest rate. Turning off the money tap. Era of cheap money coming to an end. Money supply to slow down. Volume of money disappearing.
Commercial banks ratings got cut. Australian banks,China banks and Euopean banks.So as to be less risky, higher capital ratio is needed. Again lesser money to lend out as more capital needed for reserve to meet the Basel III requirement as stated by ISAB. Volume of money diminish.
Speculative money will be dry up. Less money in the market.
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