The FTSE 100 has been steadily rising since March this year when it troughed at an index value at 3500, since then it has grown to over 5000. Many see this as a sign that the UK Economy is recovering strongly, and a sign of improvements to come. Unfortunately this may not be the case.
According to an article in MoneyWeek what is being interpreted as a bona fide Economic recovery is infact just a stockmarket bubble, caused by the Bank of England's quantitative easing programme.
I haven't yet fully researched the effects and aims of this quantitative easing, but I have a feeling that I will be against it on principle that simply printing money is not a sensible or sustainable way of encourage economic recovery.
Tuesday 10 November 2009
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