Central banks do not manage risk, they disguise it. You know you live in a bubble when a small bounce in sovereign bond yields generates an immediate panic reaction from central banks trying to prevent those yields from rising further. It is particularly more evident when the alleged soar in yields comes after years of artificially depressing them with negative rates and asset purchases.
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Freedom Or Equality with Jeff Deist (Interview)
Get Ready For The Return Of Secular Stagnation (Interview)
GET READY FOR THE RETURN OF SECULAR STAGNATION
The Interview · Featuring Daniel Lacalle and Ed Harrison. Watch here:
How A Small Rise In Bond Yields May Create A Financial Crisis
How can a a small rise in bond yields scare policymakers so much?
Ned Davis Research estimates that a 2% yield in the US 10-year bond could lead the Nasdaq to fall 20%, and with it the entire stock market globally. A 2% yield can cause such disruption? How did we get to such a situation?