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John The Pessimist

Bis Veteran Warns Of Exuberance

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Of course everyone is chasing yield that's what happens when the economy becomes ponzi.

The Swiss-based `bank of central banks’ said a hunt for yield was luring investors en masse into high-risk instruments, “a phenomenon reminiscent of exuberance prior to the global financial crisis”.

What would be hilarious if the same people running the central banks where now giving out this advice. Luckily that's not the case as that would be fecking retarded... :ph34r:

http://www.bis.org/about/board.htm

Christian Noyer, Paris (Chairman of the Board of Directors)

Ben S Bernanke, Washington, DC; Mark Carney, London; Agustín Carstens, Mexico City; Luc Coene, Brussels; Andreas Dombret, Frankfurt am Main; Mario ;Draghi, Frankfurt am Main; William C Dudley, New York; Stefan Ingves, Stockholm; Thomas Jordan, Zurich; Klaas Knot, Amsterdam; Haruhiko Kuroda, Tokyo; Fabio Panetta, Rome; Stephen S Poloz, Ottawa; Baron Guy Quaden, Brussels; Paul Tucker, London; Ignazio Visco, Rome; Jens Weidmann, Frankfurt am Main; Zhou Xiaochuan, Beijing

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From the article:

"Mr White said the world has become addicted to easy money, with rates falling ever lower with each cycle and each crisis. There is little ammunition left if the system buckles again. “I don’t know what they will do: Abenomics for the world I suppose, but this is the last refuge of the scoundrel,” he said."

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“I don’t know what they will do: Abenomics for the world I suppose, but this is the last refuge of the scoundrel,” he said."

It sounds more like Abenomics is where they go after they've left the last refuge.

Edited by billybong

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The BIS said investors are snapping up “covenant-lite” loans that offer little protection to creditors,..

They're having to be more and more inventive with their terminology.

Calling it sub-prime is so yesterday and everyone knows what sub-prime helped to do to the world economy.

"Covenant-lite" :rolleyes:

Edited by billybong

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The Swiss-based `bank of central banks’ said a hunt for yield was luring investors en masse into high-risk instruments, “a phenomenon reminiscent of exuberance prior to the global financial crisis”.

...

...

The BIS enjoys great authority. It was the only major global body that clearly foresaw the global banking crisis, calling early for a change of policy at a time when others were being swept along by the euphoria of the era.

Yeah of course but something doesn't add up there.

It's the "bank of central banks" and it "enjoys great authority" and "it was the only major global body that clearly foresaw the global banking crisis, calling early for a change of policy at a time when others were being swept along by the euphoria of the era"

- the organisation saw it coming and did nothing to stop the catastrophe, the calamity.

Have they told Osborne and Carney this time round :lol:

Edited by billybong

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Osborne had better get Royal Mail floated quickly before it all blows - otherwise the small punters might be scared off.

Likely that's why the timing for the flotation is now - and another reason why the media are hyping economic recovery and new house price bubble.

Edited by billybong

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