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ThyssenKrupp CEO warn of new market bubbles – 22 Dec 09

Reuters reported that the chief executives of Allianz and ThyssenKrupp have warned of new bubbles that they see developing in global markets.
Mr Michael Diekmann CEO of Allianz said that "You know why nothing has changed? There is a lot of cheap money out there. Through this, investors can take higher risks. We're currently financing the next financial bubble."
He added that the European Central Bank should raise interest rates slowly in 2010, adding it would be wrong to have a long period of low rates in the current economic situation.
Earlier this month, Mr Jean Claude Trichet president of ECB said that conditions were now stable enough for the European Central Bank to start withdrawing some of the emergency support it pumped into markets to counter the financial storm.

Mr Ekkehard Schulz CEO of ThyssenKrupp said that "This is where the next bubble emerges. It is my concern that we will get a commodity bubble after the real estate bubble."
Mr Schulz said that it would take until 2012 for ThyssenKrupp to return to levels seen before the global economic crisis.

Dec 22, 2009 07:46
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