Brace yourselves for the next financial crisis: Excessive savings and declining interest rates are caught in a feedback loop, creating more severe asset bubbles, Pimco warns. The global bond manager's head Joachim Fels said the natural real rate of interest, the equilibrium rate at which GDP is growing at its trend rate and inflation was stable, was sitting near zero. But the US Federal Reserve is expected to lift real interest rates for the first time in almost a decade at its meeting next week. According to Pimco, there is a strong correlation between the declining natural rate and escalating financial crises over ... (full story)