This just in .... Fed worried about the bond bubble
A Federal Reserve governor is worried about what the bond bubble could do to the financial sector and the economy. He says historically banks have tended to put their money in longer-term bonds, which have higher yields, when interest rates are low, and those longer-term bonds tend to lose the most when interest rates rise. Can anybody else sense another bailout on the way?
Two points: (1) Whose policies caused the bubble through their zero interest rate policies? Hmmmm….
2) I wish somebody up there cared as much about real people as much as they cared about their banker buddies.