Evan Greenberg, CEO of CB, is warning that liquidity might be tightening soon, as availability of credit gets constricted as America weans itself off the drug called ‘cheap money.’
“We may be at the beginning of a great unwind in credit availability,” Greenberg said in an annual letter to investors. “If so, that bodes poorly for future growth and the interest rate outlook.”
Greenberg believes the economy has slowed because “global overcapacity and increase of capital caused by cheap money from years of central banks’ stimulus — a drug we should have been off of some time ago.”
“We see less-coordinated central bank policies with the Fed aiming to tighten but confounded by a strong dollar while the EU and Japan engage in continued monetary easing,” Greenberg said. “Many emerging economies are suffering at their own hand as well.”
“We are eating our seed corn brought to you by the Fed,” Greenberg said about the impact of cheap money. “Central bank policies to stimulate growth following the financial crisis have in my judgment outlived their usefulness.”
This isn’t the comments of a misinformed man. He is the CEO of one of the largest insurance companies in the world.
Board the ark.
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Welcome to Devil Dog Greenberg.
where can i find the letter? didn’t see it on investor relations..
“Conversely, one of the insurer’s largest rivals, American International Group Inc., has announced a plan to return $25 billion to shareholders over the next two years. Focusing on returning capital to shareholders is ‘hardly a strategy for long-term growth,’ Greenberg wrote.”
– http://www.insurancejournal.com/news/national/2016/04/07/404552.htm
Sounds like a long term planner. Considering AIG’s history, maybe long Chubb, short AIG is a nice hedge pair