Download
HTML Embed
HTML EMBED
Click to Copy

Latest Episodes

Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Make Me Smart with Kai and Molly
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy

Economy is booming… for now

Kai Ryssdal Jul 8, 2014
Share Now on:
HTML EMBED:
COPY

There’s something stirring in the global market.

Around the world, assets are trading at prices that are unusually high by historical standards. When prices are high, return rates for investments are low.

That’s left investors with two choices: Settle with lower returns or seek out obscure, and even risky, investments that might yield more, says Neil Irwin, senior economic correspondent at The New York Times’ Upshot.

In his recent article, Irwin writes investors are treading both paths worldwide. In Spain, investors bought government bonds at the lowest interest rates since 1789. In France, a cable-television company was given $11 billion in the largest junk bond deal on record.

“It’s an everything boom for now,” Irwin tells Marketplace host Kai Ryssdal.

The “boom” is the flurry of investments despite economic crises and those low return rates. And, it’s happening for two reasons, Irwin says. Businesses put more money in savings than in investments while world banks are printing money like nobody’s business.

But, “it wouldn’t take much to get into bubble territory,” he says. “So, we want to keep an eye on things and make sure things don’t really get out of control like they did in the past.”

Why should you care?

“This affects all assets on Earth — increasingly real estate, farm land, office buildings. The question is: Does it matter if you’re not one of these Wall Street deal makers? The answer is absolutely.”

Think savings, putting space on the market for rent or “if you’re a person saving for retirement it means that you can’t count on getting outsized returns, the huge returns you might have gotten in generations passed,” Irwin says.

If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air.  But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.

Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.

When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.