{"id":26483,"date":"2017-10-05T06:52:19","date_gmt":"2017-10-05T11:52:19","guid":{"rendered":"http:\/\/olduvai.ca\/?p=26483"},"modified":"2017-10-05T06:52:19","modified_gmt":"2017-10-05T11:52:19","slug":"worlds-biggest-ever-junk-bond-bubble-in-pictures-what-hath-draghi-wrought","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=26483","title":{"rendered":"World\u2019s Biggest Ever Junk Bond Bubble in Pictures: What Hath Draghi\u00a0Wrought?"},"content":{"rendered":"
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World\u2019s Biggest Ever Junk Bond Bubble in Pictures: What Hath Draghi\u00a0Wrought?<\/a>\u00a0<\/span><\/h3>\n<\/header>\n
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In regards to ECB QE bond purchases, inquiring minds may be asking: What hath ECB president Mario Draghi wrought?<\/p>\n

I can explain in one picture.
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The answer in words: The world\u2019s biggest junk bond bubble.<\/p>\n

I prefer gold.<\/p>\n

On August 4, I commented on the Bubblicious Debate: Greenspan Says \u201cBond Bubble About to Break\u201d, No Stock Market\u00a0Bubble<\/a><\/p>\n

There\u2019s a bond bubble for sure, but it\u2019s\u00a0in corporate bonds, not treasuries.<\/p>\n

This also isn\u2019t the first time Greenspan has expressed concern about a bond bubble. Two years ago, when the 10-year Treasury yield was 2.44% and the CPI was 0.2%, he told Bloomberg TV that \u201cwe have a pending bond market bubble.\u201d In a Bloomberg TV interview July 2016, he expressed concerns about stagflation and said \u201cwe\u2019re seeing the very early signs of inflation beginning to tick up.\u201d He also said with the 10-year Treasury yield pushed down to 1.50% by Brexit concerns, that he was \u201cnervous\u201d bond prices were too high.<\/p>\n

\u201cNo Irrational Exuberance in Stocks\u201d<\/strong><\/p>\n