Swiss BIS Warns of Another 2008-Style Credit Bubble About to Burst !

• The BIS, FedRes, ECB, IMF, World Bank … and practically all central banks are privately owned Illuminist corporations. Eventually, the global collapse will come. The timing is always difficult.
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  Swiss BIS warns of another 2008-style credit bubble about to burst! 
  by http://www.arabianmoney.net/ 
  Switzerland’s Bank of International Settlements was one of the few global financial institutions to correctly warn of the 2008 credit bubble that brought us the Great Recession. Now the BIS is warning that another bubble has formed in the bond market, the largest liquidity pool on the planet.
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  With the interest paid on bonds at the lowest levels for 30 years this is self evident. Bonds are valued most when their yields are lowest. When yields rise bond prices fall. Are we about to reach such a tipping point?
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  Tipping point
  Blame the global central banks and their low interest rate regimes. ‘Some asset prices appeared highly valued in a historical context relative to indicators of their riskiness,’ concludes the latest BIS report.
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  ‘Unusually, equity and fixed income gains coincided with a weakening of the global economic outlook. In the past, falling growth forecasts have usually been associated with rising expected default rates and higher bond yields.’
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  Lest we forget Japan has just confirmed it is in recession as has Italy. Nobody expects any growth in the huge European Union next year. The US is hovering on the edge of a ‘fiscal cliff’ and China is supposed to carry on expanding in this deteriorating trade environment for the workshop of the world.
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  The bond bubble is perverse indeed, contrary to the laws of economics. Increased risk ought to be met with higher, not lower borrowing costs. Savers therefore feel forced to pursue higher yields by buying lower quality debt such as the bonds of near bankrupt nations as if the risk of such bankruptcy had gone away.
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  Yet the central banks continue to print money by buying bonds to keep interest rates low. It is bizarre again that the banks of the world are deleveraging and cutting back on loans at a time when the bond markets continue to offer capital for almost nothing. A credit bubble is what a bond market bubble is called.
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