The Human Action Podcast

Home | Mises Library | Daniel Lacalle on the Biggest Bubble of All

Daniel Lacalle on the Biggest Bubble of All

  • Daniel Lacalle on Mises Weekends

Tags Booms and BustsThe FedFinancial MarketsGlobal Economy

10/12/2018Daniel LacalleJeff Deist

What's the biggest and most dangerous financial bubble? Sovereign debt issued by profligate governments. And unlike stocks or corporate debt, government bond bubbles harm millions of ordinary people when they burst.

Economist Daniel Lacalle joins Jeff Deist to figure out the bizarro world of the bond bubble: negative interest rates, anemic rate spreads between government bonds and "high yield" bonds, and central banks as the unseemly buyers of last resort. They discuss the Fed's interest rate hikes, Jerome Powell's focus on data, the US housing market, and why all of us have a stake in seeing central bank balance sheets shrink.

Related article: Daniel Lacalle on the Bond Bubble

Daniel Lacalle on the Biggest Bubble of All

Note: The views expressed on Mises.org are not necessarily those of the Mises Institute.
Authors:

Daniel Lacalle

Daniel Lacalle, PhD, economist and fund manager, is the author of the bestselling books Freedom or Equality (2020), Escape from the Central Bank Trap (2017), The Energy World Is Flat (2015), and Life in the Financial Markets (2014).

He is a professor of global economy at IE Business School in Madrid.

Contact Jeff Deist

Jeff Deist is president of the Mises Institute. He previously worked as chief of staff to Congressman Ron Paul, and as an attorney for private equity clients. Contact: email; Twitter.

When commenting, please post a concise, civil, and informative comment. Full comment policy here
Shield icon view