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Economist Andy Xie
Economist Andy Xie
(Handout/Speakers Connect)

Xie predicts end of QE worse than financial crisis

Andy Xie has been warning about the dire consequences of asset bubbles for most of his career. In his latest broadside, about the consequences of the Federal Reserve’s decision to continue quantitative easing, he has raised the volume on his megaphone. The former Morgan Stanley economist reckons the global flow of hot money into government bonds and real estate has reached such a scale that the current asset bubble is greater than the one that unleashed the 2008 financial crisis. When the Fed eventually puts the brake on its money-printing, the bursting bubble will, he argues, bring a worse recession than the one we have just endured.