{"id":3348,"date":"2015-03-17T15:26:15","date_gmt":"2015-03-17T09:56:15","guid":{"rendered":"https:\/\/teekhapan.wordpress.com\/?p=3348"},"modified":"2015-03-17T15:26:15","modified_gmt":"2015-03-17T09:56:15","slug":"will-federal-reserve-spoil-the-stock-market-party-by-raising-interest-rates","status":"publish","type":"post","link":"https:\/\/vivekkaul.com\/2015\/03\/17\/will-federal-reserve-spoil-the-stock-market-party-by-raising-interest-rates\/","title":{"rendered":"Will Federal Reserve spoil the stock market party by raising interest rates?"},"content":{"rendered":"
<\/a>
\nThe prospect of future company earnings are supposed to drive stock markets. But this basic theory has broken down in the aftermath of the financial crisis that started in September 2008.
\nWestern central banks led by the Federal Reserve of the United States have printed an astonishing amount of money over the last six and a half years and some like the Bank of Japan and the European Central Bank, continue to do so. The idea was that money printing would lead to lower interest rates, and at lower interest rates banks would lend more and consumers and businesses would borrow more. This would lead to businesses and in turn, the economy doing well.
\nBut that hasn’t turned out to be the case. As the following table clearly shows, bank loans to small and medium enterprises(SMEs) in the United States have been falling as a proportion of total loans, over the years.<\/span><\/span><\/span><\/p>\n