excerpts:
- Jaime Caruana, head of the Swiss-based financial watchdog, said investors were ignoring the risk of monetary tightening in their voracious hunt for yield.
- Mr Caruana said the international system is in many ways more fragile than it was in the build-up to the Lehman crisis.
- The disturbing twist in this cycle is that China, Brazil, Turkey and other emerging economies have succumbed to private credit booms of their own
- “It may be the case that the debt is better distributed because some highly-indebted countries have deleveraged...But there is also now more sensitivity to interest rate movements."
- “Overall, it is hard to avoid the sense of a puzzling disconnect between the markets’ buoyancy and underlying economic developments globally,”
- The BIS is the doyen of world’s financial institutions, created in Basel in 1930 to clean up the mess left by German reparations payments under the Versailles Treaty. It has since evolved into the bank of central banks, and lately the bastion of monetary orthodoxy.
- “There is something strange about fighting debt by incentivizing more debt."
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