Stocks, bonds and currencies had another fit of the vapours early this week. Major Western stockmarkets slid by around 1% on Tuesday. The FTSE 100 slipped under 6,300 for the first time since April. US ten-year Treasury yields jumped, turning positive in real terms for the first time in 18 months. Emerging markets took a beating as investors fled riskier assets ). The Thai and Philippine stockmarkets both slid by 5% in a day.
What the commentators said
With all markets now artificially inflated and bonds in particular in a huge bubble, concluded Heath, the withdrawal of central-bank support could mean a "hugely painful" adjustment. Of course, the authorities could always take fright and give markets yet more of the liquidity drug they "so desperately crave".
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