Insane and people are feeling safe to be in these markets, too.
It is not insane, it is entirely logical.The more debt there is, the lower rates have to be to transmit monetary policy via the interest rate mechanism and the lower the increments have to be to manage price inflation. Who would have thought of changing the Bank rate by just 25bp 20 odd years ago? And then also worry about tripping the entire economy into recession because of it.Until the Minsky Moment...when a sudden fear of repayability can takeover and then rates rise and make the debts suddenly unpayable. Rating agencies are key to this dance. Who thinks they are not in cahoots with certain investors?