Commentary
Central banks don’t manage risk, they disguise it. You know you live in a bubble when a small bounce in sovereign bond yields generates an immediate panic reaction from central banks trying to prevent those yields from rising further.
The euro logo is pictured in front of the European Central Bank (ECB) in Frankfurt/Main, Germany, on Oct. 26, 2014. Daniel Roland/AFP/Getty Images
|Updated:
Daniel Lacalle
Author
Daniel Lacalle, Ph.D., is chief economist at hedge fund Tressis and author of the bestselling books “Freedom or Equality” (2020), “Escape from the Central Bank Trap” (2017), “The Energy World Is Flat” (2015), and “Life in the Financial Markets.”
