Grant said the Fed's efforts to keep interest rates artificially low were a "large-scale experiment of price controls" and would lead to Bernanke's undoing. Grant predicted that the current "yield famine" will end eventually and insurance companies will be able to prosper once again. When bond prices are permitted to fall and return to market levels, insurers and other companies that run their businesses by matching assets and liabilities will no longer have to wrestle with their current conundrum.

 

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