So When Comes the Powell Pivot?
Real Vision: Finance & Investing
00:00
Do You Have a PhD?
The problem is the fundamental problem that world financial markets have is there is a structural shortage of safe assets in the system. And so when you started to get dislocations in the fixed income market, particularly in the UK guilt market, the whole thing unraveled very fast. You've got this huge illiquidity hit. A lot of these funds were being forced to sell the only liquid assets they had, which bizarrely were government bonds. So the whole thing basically ballooned out and Bank of England had to step in. They say that can't happen, but it's happening. And it's been happening for years. That's telling us what we're seeing here: There's a
Play episode from 15:11
Transcript
