“The ECB and the Bank of England have purchased so much government debt that they have recently reached even further down the credit ladder, with the ECB buying corporate bonds, and the Bank of England announcing purchases of ‘Tier C’ assets, which include assets ‘backed by credit cards; student loans; and consumer debt.’ Unfortunately, this isn’t backing at all. When will it end?  It will end as credit defaults rise, bank bailouts become necessary, covenant lite debt proves to be, indeed, lite on covenants, and financial assets pushed to zero long-term yields prove, indeed, to yield zero returns over the long-term.”

http://www.hussmanfunds.com/wmc/wmc160711.htm

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