Others suspect this latest burst of enthusiasm is nothing more than a whim that will disappear when confidence in US and European markets returns. Still others see it as the beginning of a new speculative bubble.
These two fronts ultimately affect consumption spending, which plays a big part in domestic economic growth. In the financial market, the potential weakening of corporate (exporters) and household (OF beneficiaries) balance sheets could lead to some deterioration in the quality of banks’ loan portfolios. Individually, local banks have taken logical defensive action by being more cautious in lending and boosting their liquidity levels.