After years of fire and brimstone sermons, also known as the Bank of International Settlements’ annual reports delivered with doom and gloomy aplomb by Jaime Caruana, who year after year warned about the adverse side-effects of central bank intervention, today the BIS released its most upbeat reports in years, in which it praised the recent rebound in global growth and predicted that GDP may soon revert to long-term average levels after the sharp improvement in sentiment over the past year.
Or maybe not, because even as talk of a “global coordinated rebound” continues, it has once again rolled over, with the US economy barely growing above stall speed, while the BIS explicitly notes that “despite the best near-term prospects for a long time, paradoxes and tensions abound” among these are the VIX…
Financial market volatility has plummeted even as indicators of policy uncertainty have surged.
… and the record disconnect between equities and bonds.
This post was published at Zero Hedge on Jun 25, 2017.