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Italy’s Populists Furious That Bond Spreads Are Trying To ‘Blackmail’ Them, But The Real Victim Here Is Price Discovery

I don’t know if you’re aware of this or not, but somewhere, buried beneath $ 15 trillion-ish in central bank liquidity and hiding under the distortions that liquidity has created by effectively forcing investors to knowingly misallocate mountains of capital, are actual markets.

To be sure, price discovery (where that entails the participation of price sensitive investors) hasn’t really a been a thing for the better part of the last decade.

In one way or another, all the bids are price insensitive these days, whether by definition (e.g., central banks), by choice (e.g., Dealbreaker

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