Euro zone will eventually lead to financial imbalances - Natixis

Analysts at  Natixis Economic Research explained that the highly expansionary monetary policies conducted in the United States and the euro zone will eventually lead to financial imbalances.

Key Quotes:

"Central banks will then start worrying about these imbalances, although it was the monetary policies these very central banks conducted that created them in the first place. We can give the examples of the United States, Germany and France, with:

•  In the United States and France, the increase in corporate debt ratios (financing share buybacks in the United States);
•  In all three countries, the rise in property prices and the associated borrowing;
•  In the United States and France, the rapid rise in consumer credit again, and in the United States, a renewed rise in household defaults on consumer loans.
• The central banks may legitimately be concerned about these financial imbalances, but they would not have appeared if their monetary policies had been less expansionary."