Now, as inflation forces them to turn off the cash spigots, markets are looking ever more vulnerable.
The UK bond market blowup which forced an unusual Bank of England intervention has shone a light on the fragilities of markets as they transition away from easy money.
While the gilt capitulation was triggered by UK government tax giveaways and exacerbated by quirks in the UK pension industry, the underriding factors were years in the making and global in nature. Major central banks around the world have kept borrowing costs and government finances in check through super-low rates and asset-purchase programs since the global financial crisis.
