Financial Times FT.com

Recovery prompts fear of bubble

By Michael Mackenzie

Published: September 18 2009 19:01 | Last updated: September 18 2009 19:01

Record low interest rates and vast amounts of money pumped into economies by central banks has translated into surging asset values across financial markets, raising the prospect of a new speculative bubble.

“Instead of getting consumer inflation from all this central bank liquidity, we are seeing asset price inflation and we all know that usually does not end well for investors,” according to Steven Ricchiuto, chief economist at Mizuho Securities.

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