Stuck At Zero: Global Risks (MASSIVE DEBT BUBBLE) Have Tied The Fed's Hands

``The global debt markets -- especially US credit -- have ballooned in the time period since the financial crisis. If you think of the reasons behind a hike (besides reloading the stimulus quiver), they basically boil down to the Fed's ability to reprice assets and slow capital formation to stave off inflation. The repricing of assets is first felt in the debt markets. The fact that these markets are now larger than they have ever been (having grown at a double digit clip in corporate credit and even faster in government issued bonds), makes the impact of even a modest hike exponentially more powerful than ever before... Put another way, the amount of losses by global bond investors in percentage terms for a given hike in rates is around 2.5x as powerful as it was the last time the Fed hiked rates over nine years ago. So might 25bps act a bit more like 62.5bps? When will we find out?''