Dominic Frisby talks to market historian, geologist and newsletter writer Bob Hoye of Institutional Advisors. They discuss whether or not central banks can influence asset prices and talk about the possibility of an impending credit crunch. Central banks believe that they can depreciate a currency at will and elevate asset prices. But in Hoye’s view, asset price inflation needs some kind of speculative element. Therefore asset prices show huge swings compared to the growth curve of credit. Also Hoye states that inflation should not be confused with a rise in consumer prices.
Bob Hoye - more trouble ahead?
Bob Hoye - more trouble ahead?
Bob Hoye - more trouble ahead?
Dominic Frisby talks to market historian, geologist and newsletter writer Bob Hoye of Institutional Advisors. They discuss whether or not central banks can influence asset prices and talk about the possibility of an impending credit crunch. Central banks believe that they can depreciate a currency at will and elevate asset prices. But in Hoye’s view, asset price inflation needs some kind of speculative element. Therefore asset prices show huge swings compared to the growth curve of credit. Also Hoye states that inflation should not be confused with a rise in consumer prices.