4 min read.Updated: 16 Jul 2019, 12:56 AM ISTV. Anantha Nageswaran,Gulzar Natarajan
Recurrent bouts of overheating followed by pain have become common in developing countries
There is an emerging consensus that globalization is reversing. Trade protectionism is on the rise and labour flows across borders are being resisted. But globalization is still going strong in one area. Madness in financial markets is global, and it shows no sign of stopping. There are six examples. Bonds trading at negative yields have recently crossed $13 trillion. Greek government 10-year bonds are trading at a yield of less than 2.5%. The yield, a few years ago, was at 44%. The Greek economy has not exactly been repaired. Investors are willing to lend more money to highly indebted borrowers with less protection. Austria floated another 100-year bond at a yield of 1.2% and it is now yielding 1.06%. Finally, Bitcoin is back. The common thread that binds all of these is financialization, and it has been fuelled by central banks.
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