Mmastodon BusinessEconomy first seen 1 d ago, last 17 h ago, peak #7

Commenters warn credit bubble is set to burst as rates rise

Original: "We should not be surprised. This is not the first time that mountains of debt, based on central bank backing for deregu

Economic commentators argue the world is repeating a familiar pattern: decades of cheap central-bank money and deregulated lending have built up mountains of debt and a vast credit bubble, which rising real interest rates now threaten to deflate. They point to bond markets already pricing in the fallout, and say none of this should come as a surprise given past financial crises.

Why now: Concerns over high interest rates and debt levels are fueling debate about an imminent credit crisis.

central banksbond markets

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Evidence

• "We should not be surprised. This is not the first time that mountains of debt, based on central bank backing for deregulated, ‘easy money’ creation, has ballooned into a vast credit bubble, only to be burst by high, real rates of interest. Bond markets are anticipating those… · junesim63@mstdn.social · 9

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