Excessive Leverage Is Now The Biggest Problem Facing Markets

Excessive leverage poses a huge risk to markets.

During the past few the Bank of England and European Central Bank have joined the US Federal Reserve and Bank Of Japan by issuing relatively hawkish statements on monetary policy, signaling what could be the beginning of the end of the great post-financial crisis central bank experiment.

• Fed Raises Rates Despite Data

Even though some might welcome the end to the over-easy monetary policy, reducing stimulus and raising interest rates is not going to be an easy task. During the past decade, consumers and companies have piled on a record amount of debt, taking advantage of low-interest rates and banks have been more than happy to accommodate this demand.