Sunday, November 29, 2020

Tag: After it Caused the Most Absurd Bond Bubble Ever

Here Comes the ECB with a “Bubble” Warning, After it Caused the Most Absurd Bond Bubble Ever

by Wolf Richter, Wolf Street:

“The ECB cannot and should not turn a blind eye to risks to financial stability.”

“Maintaining financial stability is about two things: First, it is about preventing the build-up of bubbles; second, it is about making the system more resilient,” said ECB Executive Board Member and Vice-Chair of the ECB’s Supervisory Board, Sabine Lautenschläger, today in a speech. It’s not often that central bankers are allowed to use the B-word in public, except when denying that bubbles exist, or when denying that they can be identified if they do exist.