Doug Noland: Horrible Risk Versus Reward

``Some nine years later, there should be little confusion surrounding low ("Conundrum 2.0") bond yields. Global central banks have demonstrated there is no limit to either the amount of "money" they are willing to create or quantities of securities they will buy. They have essentially guaranteed uninterrupted abundant and cheap market liquidity. Policymakers have assured market participants that financial crisis (or even a recession!) will not be tolerated. Worse yet, central bankers have repeatedly demonstrated no appetite for even a small ration of global de-risking/de-leveraging. In total, myriad interventions have had momentous impact on global market risk and "term premiums."''