BIS: World faces another asset bubble
BIS warns that global economy is facing another asset price bubble
Switzerland’s Bank for International Settlements has warned that the global economy is facing another asset price bubble, according to The Daily Telegraph. BIS’s latest quarterly economic report says: "Some asset prices appeared highly valued in a historical context relative to indicators of their riskiness." BIS, which was almost a lone voice in 2007 warning of the global debt crisis, pointed out that bond prices were very high – even though the number of bonds defaulting is currently three times higher than it was in 2007. It also pointed out that yields on mortgage bonds have fallen to the lowest level ever recorded.