Tim Price on bond investors trying to front-run central bank purchases

As a direct consequence of the central bank manipulation of asset prices, today’s markets give the impression of risklessness, irrespective of price.  Why not buy conspicuously overpriced bonds if you know there is a greater fool out there, in the form of a central banker willing to pay even more for those bonds than you did?  After all, the central bank can print money out of thin air to make those purchases.  This must end badly: major financial accidents are typically born out of a misconception of risks, rather than returns.

~ Tim Price, "Regime Change is Coming," Price Value Partners, April 1, 2023