In an interview with Australian Financial Review, CQS founder and chief executive Sir Michael Hintze shared his views on how the policy response to the global financial crisis has shaped the world today.
Speaking about how the implementation of quantitative easing (QE) following the crisis impacted global markets, Hintze said: "I don't think anyone really understands how big an effect QE had on real asset prices and how it changed the dynamic within our society not just in the US and Europe but everywhere.”
Hintze went on to note how QE has had the effect of increasing income inequality, and in turn fueling populist politics around the world.
He also explained how the crisis and its aftermath has accelerated China’s rise as a global economic superpower: “Ten years on, they are now into their second five-year plan which they have executed pretty darn well. In my view it allowed China to use its money to actually go into parts of the world where the US could not Latin America, Asia, and emerging markets."
Finally, he reflected on his personal experience weathering the storm during the financial crisis, explaining how CQS and its staff “hunkered down” and were able to pull through because “we were operationally strong.”