Ruffer: QE 'liquidity binge' may cause fresh crisis

The managers of the Ruffer investment trust are concerned further monetary easing may lead to another financial crisis on a par with 2007/8 as talk of yet more stimulus fuels 'risk-takers'.

Managers Steve Russell and Hamish Baillie, speaking ahead of the Bank's decision to hold fire on more QE for now, said further stimulus from central banks has left markets and investors facing similar risks to those seen prior to the financial crisis. They said: "Many moons ago we wrote of the moral hazard in monetary policy where risk-takers were offered the protection of the Greenspan put, or whatever assortment of goodies that might fall out of Dr Bernanke's helicopter. "A similar sequence of events is unfolding now and there are parallels with the years leading up to the credit cr...