Low rates here to stay?, page-5

Over extended periods of low rates will distort the value of all asset classes and cause eventual catastrophe.

The very thing the central planners are trying to avoid will happen, which is extreme price volatility.

The problem is that the only time you know it has been over extended is in hindsight. Right now all the groups that benefit from low rates feel fantastic, and this can go on for years.

Over extending the natural bond cycle is long term financial suicide. Negative rates, what a total joke. Some countries need to take their medicine but don't want to.

My personal opinion is that central planners are crapping themselves when they look at global asset leverage levels and the global economy. They prefer to wander into negative rates than test whether a grexit or other black swan event will hurl financial markets and their derivatives into a chasm.

If low rates were the magic cure everyone makes them out to be, it would have worked numerous times over the centuries to stave off financial crisis, and we would have had centuries of financial stability.

This is a very dangerous game.