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Yet More Warnings Against ‘Complacency’ on Financial Bubble

Jan. 8, 2018 (EIRNS)—Bloomberg news service reported today that Citigroup Inc. and Pacific Investment Management Co. (PIMCO) have advised their clients in the last few days that there are reasons to be worried about the financial system.


"cite geopolitical factors, a removal of central bank stimulus and the risk of an inflation overshoot as possible catalysts for an end to the current economic expansion and market exuberance,"

Bloomberg summarizes.

In typical convoluted bankerese, Citigroup’s Mark Schofield wrote that

"the risk/reward profile is deteriorating as expected returns peak and volatility begins to rise.... The ‘Goldilocks environment’ cannot last forever; a plateau in growth would be more bearish than a pick-up in inflation."

Pimco’s Joachim Fels worries about

"monetary overkill by central banks that seem more eager than ever to escape from bloated balance sheets and the dreaded lower bound of interest rates. Led by the Fed, the tide of global monetary policy is turning, and when the tide goes out, we will find out who is swimming naked."

(No illustrations provided.)

In a separate story on the global "equity euphoria," Bloomberg applies one of its crazy stock market measurements to nervously conclude that major stock markets are all surging to "overbought levels."