Stocks fall due to low bank rate
IT’S not rising interest rates that are causing the US-led market correction ( C-M, Oct 12).
It is because interest rates have been too low for too long.
This has caused an over-inflated bubble in stock and property markets as investors chase profits there.
Bubbles are starting to burst. Higher interest rates will encourage more savings and less incentive to borrow.
Borrowing is creating dangerous levels of debt, as we saw before the 2008-9 global financial crisis. Reg Strutt, Kippa-Ring