Global Savings Glut

From a speech of the new Fed chairman low long term interest rates reflected low levels of investment in the global economy relative to savings. Additionally there is a low level of desire for US exports and slow growth outside the US.

 

The beige book released yesterday stated that home prices weren’t increasing as rapidly as before; the economy was increasing at a 3-3.5% rate and on 3/28 the interest rate would raise to 4.75.

 

Although not said in the FT, I heard from a source that oil would be over $100 by the end of the year.