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[andiron]

w/ developed economies reaching the end of hope-tunnel w/ LT rates brought as low as one could.. US 10yr shortly headed to ~1.4-1.5% in the next few weeks..we are reaching the end of the grand experiment with 30 long years of low rates bolstering asset prices..The money managers of this age (most w/ overhyped and largely useless diplomas from HBS, Yale etc) have not seen a period where asset prices do not go up and thus conditioned to think that way ..so are the myriad pension funds who model 8% yoy rise in asset prices as the avg to determine pension outlays (LOL)..// So as the rate decrement has reached the lowest points reachable - signifying a barely breathing financial system - the converse of higher asset prices have reached highest points attainable... A tsunami of asset fall in Global RE, Stock market and high yield bonds would blast everything in its way... Be very careful out there......

Edited by andiron, 17 January 2012 - 10:58 AM.