Thursday, August 18, 2016

The Hubris Of Central Bankers
Is Making Bond Value Determination Impossible
[Cliff Küle has often said: 'HUBRIS IS THE NEMESIS THAT WILL LEAD TO A CATHARSIS']
"Governor Carney has adopted the practices of his fellow global central bankers and distorted the market-signalling mechanism. Carney’s impetuosity has wreaked havoc on the U.K. bond market as the BOE failed to take into account that pension funds, investors and insurance companies were not playing the game and would not sell their holdings. Portfolio managers realize that they have nothing to replace their sovereign debt with if they sell the higher yielding assets they have in inventory. THE ARROGANCE OF GLOBAL CENTRAL BANKERS HAS MADE IT IMPOSSIBLE FOR THE MARKET TO ASCERTAIN ANY SENSE OF BOND VALUE. Why? Because the all-knowing oracles will not let the markets determine value .. The AGE OF CENTRAL BANKER UNCERTAINTY OUGHT TO MAKE YELLEN, CARNEY, KURODA, DRAGHI et. al. proceed with extreme caution but HUBRIS is in plentiful supply."
- Yra Harris
LINK HERE to the commentary

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