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Credit Suisse, UK Pension Crisis / News of the Money-World #49

NZ Everyday Investor

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Can the Fed Step in and Save the Day?

Bond yields go up and when a yield goes up on a bond, it can mean that the value of the bond is going down. Unfortunately, this was yet another example of where central banks needed to step in because you have these very large government bond markets which we all believe actually are not available. And so, yeah, I think it's kind of an interesting one, right, where supposedly the market, the safest asset at all, which nothing can ever go wrong,. There are lots of examples where the market has failed, but I guess the reason why it is safest, because you've also got a Fed or reserve that's able to step in and save the day.

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