The brand new video below features Gregory Mannarino issuing a critical alert due to Yale Professor and Nobel Laureate Robert Shiller warning bond investors of a bond market crash in the latest bit of news from the financial world to rock the system.
Shiller has issued two previous warnings that have come to pass, in 2000 in his book "Irrational Exuberance" and in its' 2nd edition in 2005, soon before the real estate bubble popped and in his latest warning tells us "the US bond market, showing such low yields, looks as it may have gone through something of a buble, and may collapse further, eventually."
For those who have been following Mannarino, they know that he has been screaming from the rooftops about this for a long time and this latest warning from a well respected Professor of Economics is just another sign and we need not look too far into the future to see the huge event materializing that financial experts and 'forecasters' have been warning about for quite some time.
So what's driving yields so low? Central banks have served a role by buying fixed-income securities, but he says there's more to it than that.
"The story is longer and deeper than that; it's not just central banks," Shiller said on Thursday. "It's something about our investment opportunities and our fears and our culture, so it's a very deep phenomenon. And the question in my mind is: Will it last?"
Not likely, says Shiller, given that many long-term bond yields around the world are fast approaching zero on an expected inflation-adjusted and even nominal basis.
"We can't go below zero, not far below zero," he said. "it seems to me this 'new normal' culture could last, but then it could crash."
"I think it's a risky time to be investing in long-term fixed income," the economist said.
