The Real Crisis Will Be North of $100 Trillion | Zero Hedge.
The 2008 crash was a warm up.
Many investors think that the markets could never have a crash again. They think that the 2008 meltdown was a one in 100 years crisis.
They are wrong.
The 2008 Crisis was a stock and investment bank crisis. But it was not THE Crisis. THE Crisis concerns the biggest bubble in financial history: the epic Bond bubble…
If you need proof that bonds are in a truly epic bubble… one that will implode the financial system when it breaks… consider that half of ALL government bonds in the world currently yield less than 1%.
What is clear is that the world has become addicted to central bank stimulus. Bank of America said 56pc of global GDP is currently supported by zero interest rates, and so are 83pc of the free-floating equities on global bourses. Half of all government bonds in the world yield less that 1pc. Roughly 1.4bn people are experiencing negative rates in one form or another.
These are astonishing figures, evidence of a 1930s-style depression, albeit one that is still contained. Nobody knows what will happen as the Fed tries to break out of the stimulus trap, including Fed officials themselves.
http://www.telegraph.co.uk/finance/oilprices/11283875/Bank-of-America-sees-50-oil-as-Opec-dies.html
Why are yields this low?
