It is only logical that when one of the smarter people in finance warns that he “sees bubbles everywhere”
that he should be roundly ignored by those who have no choice but to
dance. Because Bernanke and company are still playing the music with the
volume on Max, and if not for POMO there is always FOMO.
However, if there is any doubt why this “rally is the most hated
ever”, here are some insights from the Bond King from an interview with
Bloomberg TV earlier today: “We see bubbles everywhere, and that is not to be dramatic and not to suggest they will pop immediately. I
just suggested in the bond market with a bubble in treasuries and
bubble in narrow credit spreads and high-yield prices, that perhaps
there is a significant distortion there. Having said that, it suggests
that as long as the FED and Bank of Japan and other Central Banks keep
writing checks and do not withdraw, then the bubble can be supported as
in blowing bubbles. They are blowing bubbles. When that stops there will be repercussions. It
doesn’t mean something like 2008 but the potential end of the bull
markets everywhere. Not just in the bond market but in the stock market
as well and a developing one in the house market as well.”Read More @ ZeroHedge.com
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