New York, New York (PressExposure) December 10, 2009 -- "Mann International" analysts believe that Investors worldwide borrowing US dollars and buying assets - typically commodities and equities - are fueling the next bubble which, once deflated, could seriously damage the nascent recovery underway in several countries.
The relative cheapness of the USD and its ample supply is causing many analysts to identify Asia as the new "place to be" and borrowing in the first world and lending to the developing world is fast becoming the trade du jour.
"Mann International" has made no secret of its misgivings about the fact that the US stock market appears to be insulated with cheap leverage. The firm believes that generating cheap dollars enables hedge funds to speculate and build leverage in many other asset classes.
"Mann International" sources suggest that leverage is still alive and well in the markets and cites impressive profits from the large banking corporations being generated by speculation in markets rather than from mergers and acquisitions.
One of the "Mann International" sources suggested that it would be prudent for the central banks to further scrutinize banking corporations to ensure that they are capable of withstanding a sharp correction in the inflated asset prices their policies have helped to create.
The firm has urged clients to remain cautious with regard to purchasing over-valued stocks and to wait for appropriate recommendations as usual.