From Mario Draghi, president of the European Central Bank:
We don’t see a serious risk of bubbles in the sovereign market.
“Draghi: No Risk of Euro Bond Bubble,” Wall Street Journal, 10/13/14
Surely if a central banker and Goldman Sachs alumnus does not see any bubble risk for bonds from governments in Europe, some of whose economies are shrinking and have over 20 percent unemployment, there must not be any bubble risk. Wasn’t it former chairman Bernanke who assured us—just before it blew up—that there was no housing bubble?
