Investors take fright as Fed ponders when to stop the presses

It is still the main topic in town. We have had some wobbles in markets as investors have taken fright at the idea of fewer new dollars around.

Investors are alarmed at the thought that interest rates may go up in the US and in the UK. If they do so because the recoveries are well set, it is not all bad news. It is clearly bad news for bonds. Rising interest rates means falling bond prices. Shares do not necessarily have to slump as well. A better recovery should come with more spending, more activity, more profits, and higher dividends. What's not to like? A recent study has shown quantitative easing has its downsides as well as its upsides. The very low official interest rates have meant savers have lost a lot of inte...