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Global markets are no longer obeying economic common sense

Discussion in 'Market News' started by Lily, Feb 9, 2016.

  1. Lily

    Lily Forum Member

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    Financial markets no longer know what is good or what is bad for them – so how can they know who to blame when things go wrong?

    One of the oddest things about 2016, so far at least, is how economic common sense is being twisted in all sorts of ways to explain what’s going on in the global economy.

    By the end of 2015 market commentators were clamouring for an interest rate rise from the Federal Reserve to restore confidence. Normally, the only reason to raise rates is if there is inflation in the economy and you want to squeeze it out.

    Related: World markets in turmoil for a second day

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