Kind of assumes the future in a vacuum, in my opinion, but still worthy of note. From MarketWatch.com:
Bond yields are headed near 4% and not even Fed Chairman Ben Bernanke can stop the “inevitable shock” that’s coming.
That’s a fresh view from Goldman Sachs’s former chief economist Jim O’Neill, writing an op/ed column for Bloomberg on Wednesday, entitled, “Can Bernanke avoid a meltdown in the bond market?”
His answer? Not really.
“The past few weeks have given us a hint of what might happen when the Federal Reserve starts to reverse its super-easy monetary policy. Expect turbulence in financial markets, especially for assets that have moved far above normal or reasonable valuations,” he writes.
In a separate Bloomberg Television interview he adds that investors should expect “quite ugly days” in the process.