Risk Junkies, Unite!

The Fed decision? So passé. Not to be outdone, the Bank of England today is heralding a new era of overpriced risk in the market relative to its fundamentals. Think of it as the unstoppable force against the immovable object. In the summer, the price of risk clocked in at an unsustainable low. These days, it’s just the opposite. By now, we assume you’ve already ravenously devoured today’s superexciting “semi-annual financial stability report” out from the B of E. But did you know this?: Embedded in its bone-dry contents are a coded message, exhorting the risk addicts of Europe who breathlessly thronged to the market this time last year (and have since scattered to parts unknown, probably Spain) to get their sweet cheeks back to Old Blighty.