zerohedge.com / by Tyler Durden / Oct 10, 2016 2:20 PM
“This is a very artificial market,” warns Allianz’ Mohammed El-Erian, and while markets are expecting an ever increasing pace of central bank buying of assets, their policies are no longer working…
This last weekend comes closest to the notion of an AGM for the global economy. At the annual meetings of the International Monetary Fund and World Bank, the heads of the two institutions reported on recent developments, prospects and policy implications. As The FT reports, El-Erian remarks that:
In sum, the AGM reinforces three concerns about the global economy.
1) Its prospects are becoming more fragile in terms of growth, financial stability, indebtedness and, therefore, inclusive prosperity.
2) Bizarre political dynamics add fuel to the fire, directly and by holding back timely policy adjustments.