Saturday, September 13, 2014
Central Banks Jump The Shark
There was an episode of Happy Days where Fonzie jumped over a shark on water skis. Since then the idiom Jumping the Shark has come to mean when the creators of a show have run out of good ideas.
Japan's central bank has made negative interest rates and also Europe’s central bank has made negative interest rates. This means they have run out of good ideas. These central banks have jumped the shark. From here on the quality will go downhill. It will not be fun any more.