THE CREDIT CRISIS: THE BUBBLING BOND MARKET RICK TOBIN
n recent years, both short and long
term interest rates have plunged to
near, or at, all-time record lows, partly
due to the manipulation of the U.S.
Bond Market. Since the Credit Crisis
(www.thecreditcrisis.net) officially began
back in the Summer of 2007, asset prices
have both crashed and boomed over the
past six (6) years because of, or in spite
of, the sluggish U.S. economy.
For U.S. economists, financial analysts,
investors, bankers and Central Bankers,
one of the biggest fears since 2007 or
2008 was that the USA may end up
somewhat like Japan back in the 1990s,
when their stock, bond, and real estate
“bubbles” all popped. Sadly for the
Japanese, the past few decades have
been very asset deflationary as asset
values have plummeted to values at a
fraction of the market peaks in the late
‘80s or early ‘90s, in spite of their incredibly low interest rate policies, which were somewhat akin to the USA’s
ongoing “Quantitative Easing” policies.