CIG: Some analysts predict a rough October for Wall Street.

Sept. 20, 2009 - PRLog -- A recent leap in the prices of both high and low risk assets, has caused some to raise eyebrows, with some forecasters saying that the emergency rescue procedures that assisted markets in their recovery could now also be setting them up for another collapse, CIG has heard, but, it seems the bulk of institutional investors just aren't heeding the signs.

Talk of a virtual circle of recovery in asset values and the real economy abounds at big banks, a sharp if wary disparity to the dire pessimism which reigned in recent times.

Abnormal simultaneous recoveries in equities, U.S. government bonds and commodities are related to a single reason: super-cheap monetary policies accepted around the globe.

Not many oppose Fed Reserve Chairman Ben Bernanke's argument that he had to flood markets with cash to avert another Great Depression, according to CIG research, but there are those who say his policies create risks of their own, making it harder for monetary authorities to determine the exact level of stimulus their measures deliver.

One clear candidate for such a sudden turnaround is the U.S. stock market. Going beyond just  recovering  more than half its value in the past six months, it has also seen a  rebound based largely on a rally in shares in financial firms, many of which are still known to rest on unstable ground, CIG understands.

A continuing decline in consumer debt repayments and a deteriorating picture in commercial real estate are all placing further strain on already-heavy balance sheets.

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