From madness to even more madness, central banks keep driving herded capital off the edge of all reason…the effect is imploding wealth, not increasing it.
The Bank of England’s expanded quantitative-easing program ran into a stumbling block on just its second day as investors proved unwilling to part with their holdings of longer-dated bonds.
The central bank failed to buy enough gilts to reach its stated goal at an operation on Tuesday — the first such failure since it initially started quantitative easing in 2009. The yield on 10- and 30-year bonds fell to records after the operation. The BOE, led by Governor Mark Carney, said on Wednesday that it will incorporate the 52 million-pound shortfall into the second half of the six-month program. Here is a direct video link.