World Bank Prez Worried By Asia’s Faster-Than-He-Expected Recovery, Trots Out The B-Word

Leave it to the World Bank to rain on everybody’s parade. The president of the root of all evil, in ignorance or in spite of Larry Fink, sees a bubble burgeoning to the east.

Mr Zoellick said on the margins of the Asia-Pacific Economic Co-operation summit in Singapore: “Traditionally the central banks in east Asia will follow the [US] Federal Reserve because if they raise interest rates [independently], that will draw capital and appreciate their currencies.
“In the US and Europe, because things are still relatively weak, I don’t see any likely inflationary effects at this stage. In east Asia, if you start to get a strong rebound in growth and you’ve got a lot of liquidity, there is a question of whether you start to face asset bubbles,” he said.

Zoellick’s warnings come hot on the heels of his partners-in-crime at the International Monetary Fund doubling their estimates for Asian economic growth this year.

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6 Responses to “World Bank Prez Worried By Asia’s Faster-Than-He-Expected Recovery, Trots Out The B-Word”

  1. guest says:

    Shazbot, 10 minutes and no interest?

  2. guest says:

    I must say, disguising Greg as Jon was an ingenious move by Bess to keep Gregums on the payroll.

  3. guest says:

    No interest b/c this post provided nothing more than what I received in the morning CFA newsbrief. Definitely not Greggums b/c no pathetic attempts at sarcasm and there were actually embedded links which GM seemed unable to comprehend.

  4. guest says:

    The IMF and the World Bank need to switch names.

  5. guest says:

    Jon has firm grasp of the hyphen.

  6. WLuyhy Say, you got a nice article. Want more.