Fed Scaring People Betrays Low-Rate Addiction, Denmark Says – Bloomberg 08-28-13

Salient to Investors:

Denmark’s Economy Minister Margrethe Vestager said world reaction to talk of Fed tapering clearly shows how addicted people have become to record-low rates and a reminder that low borrowing costs are still underpinning demand across much of the globe.

The IMF said Denmark’s record debt levels make them more vulnerable to shifts in rates, while the OECD estimates Danish households have 310 percent debt relative to their disposable incomes, a world record.

Read the full article at  http://www.bloomberg.com/news/2013-08-27/denmark-says-fed-scaring-people-highlights-low-rate-addiction.html

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Rich-poor divide accelerating, says OECD – BBC News 05-15-13

Salient to Investors:

The OECD said:
  • The gap between rich and poor widened more in the 3 years to 2010 than in the previous 12 years. The richest 10% of society in the 33 OECD countries received 9.5 times that of the poorest in terms of income, versus 9 times in 2007.
  • Countries with the biggest gaps included the US, Turkey, Mexico and Chile. Countries with the least gaps were mainly in north Europe, Iceland, Norway, Denmark and Slovenia.
  • If governments do not stop cutting back on welfare support the gap will widen.

Read the full article at http://www.bbc.co.uk/news/business-22545210

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Central Banks Spewing Cash Need to Plan Exit Timing, Rohde Says – Bloomberg 02-28-13

Salient to Investors:

Danish central bank Governor Lars Rohde said world central bankers need to plan for monetary tightening to avoid feeding asset bubbles. Rohde said there is no short-term alternative to global easing, given the state of the real economy.

Jacob Graven at Sydbank A/S said it will be the same pattern as every time cycles shift, but the risk of getting it wrong this time is considerably bigger.

Sweden, Norway and Switzerland are tightening rules on mortgage lending as low rates inflate property prices and credit growth. , S&P said Swedish household debt rose to 173 percent of disposable income in 2012, Norway’s will exceed 200 percent in 2013, while Denmark owns the world record at 322 percent of disposable incomes.

Read the full article at http://www.bloomberg.com/news/2013-02-27/central-banks-spewing-cash-must-consider-exit-timing-rohde-says.html

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