After China began tightening monetary policy faster than expected, Obama's sudden hard charge against U.S. banks was the straw that broke the market's back according to Bank of America Merrill Lynch. What we've witnessed with the recent market sell-off is the ultimate result of Wall St. diverging from Main St.:
Merrill: Wall Street (the equity market) and Main Street (the labor market) have diverged, and this cannot continue indefinitely. Financial sector policies have worked. Labor market policies have not. The biggest risk for 2010 bulls is that policy makers withdraw financial market stimulus via regulation, or raise rates before stimulus has had a chance to help the labor market and cause a double-dip.
(Via Bank of America Merrill Lynch, "The Wall St. Vs. Main St. Correction")
Žiadne komentáre:
Zverejnenie komentára