Greece's Former Finance Minister Reveals Why the Markets Don't Care About Brexit
It's time for investors to "wake up" to the underlying roots of the economy, which are not good, according to Greece's former finance minister Yanis Varoufakis.
"The markets have become numb," he said. "They are not really reacting to substantial news."
While the stock market plummeted in the immediate aftermath of the June 2016 Brexit vote, the declines reversed soon after.
Varoufakis attributes this numbness to massive amounts of central bank liquidity, which has been pumped into global financial markets since the recession of 2008.
"The way [central banks] were forced to print mountains of money in order to float the global financial sector has been a little bit like giving cortisone to a cancer patient," he said. "The true cause of the disease has not been defeated.
Varoufakis is author of the new book Adults In the Room, which details his brief tenure in 2015 as Greece finance minister.
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Editors' Pick: Originally published on Nov. 9, 2017.
