Entrepreneur Peter Thiel appeared on CNBC’s “Squawk on The Street” and pointed out distortion of the bond market while warning of a looming government bubble.
“You said that things would get quite tough when QE ended a month ago, and sure enough the volatility is spiking,” said host Simon Hobbs.
“We’ve been in this world where people have been printing money at the Fed for six years, and so it is a very strange question, what happens when it ends,” replied Thiel.
“What do you think of tech valuations at the moment?” asked Hobbs.
“There’s a way in which the QE has affected all valuations. I think it affects- I think the thing that is most distorted is the bond market and fixed income, and perhaps less on the equity side, but we certainly are back on a government bubble of massive size,” said Thiel.