Federal Reserve Bank of New York/Pavel Ko

Markets’ Federal Reserve Love Story

For many years market participants have been richly rewarded for falling in love – quickly and decisively – with policy measures adopted by the US Federal Reserve. More recently, however, some have become less comfortable, warning that the codependence is encouraging excessive risk-taking and, in some cases, bubbly valuations.

LAGUNA BEACH – The morning drive to my 11-year old daughter’s school is always fun, and often a source of insight. That was certainly the case last week when she pointed out something about Frozen, the hugely popular Disney film, that had totally escaped me. “It’s unusual,” she said, “to see a Disney movie in which they end up telling us not to marry someone we’ve just met.”

Quite early on in the movie, Princess Anna meets Prince Hans at her sister Princess Elsa’s coronation ball. They immediately connect on many levels and, yes, “fall in love.” He quickly proposes, and she accepts, but Elsa refuses to give her blessing.

It then takes Anna most of the movie to figure out that Hans is evil – set on getting rid of both her and her older sister in order to take over the kingdom. Luckily for her, there is a wonderful commoner – Kristoff – whom she has gotten to know during the course of her adventures. Unlike Hans, he is genuine and dependable; they end up together.

To continue reading, please log in or enter your email address.

To read this article from our archive, please log in or register now. After entering your email, you'll have access to two free articles from our archive every month. For unlimited access to Project Syndicate, subscribe now.

required

By proceeding, you agree to our Terms of Service and Privacy Policy, which describes the personal data we collect and how we use it.

Log in

http://prosyn.org/qtWagcf;

Cookies and Privacy

We use cookies to improve your experience on our website. To find out more, read our updated cookie policy and privacy policy.