Satyajit writes on a subject which is also my conviction that… The “everything bubble” is deflating. The fact that it’s happening relatively slowly shouldn’t blind us to the real threat: The world is dangerously underestimating how hard it’ll be to deal with the fallout once it pops.
Frothy markets can’t disguise the warning signs. The shift to tighter monetary policies in the West is putting pressure on global equity and real estate values. Even more critically, it’s weakening credit markets. Over-indebted emerging markets face headwinds from rising borrowing costs and dollar shortages.

Opinion | The bubble is losing air. Get ready for a crisis

The shift to tighter monetary policies in the West is weakening credit markets. Over-indebted emerging markets face headwinds from rising borrowing costs and dollar shortages

Satyajit Das, Bloomberg

Investors are underestimating how disruptive trade conflicts and sanctions could turn out to be. Photo: AFP

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