There is no need for explanations almost a century of history explains, that in order to mop up the expanded monetary base interest rates will need to go up. If not the consequences of a dramatically expanded monetary base will need to be dealt with down the line. You would have to categorize the current base as a “fat tail” or “disequlibrium” we cannot remain in this zone without consequences
Ending with a quote from Hussmans weekly letter:
The effect of quantitative easing is to extend and defer the consequences of reckless speculation, provided that low-risk liquidity is viewed as an inferior asset. Quantitative easing doesn’t eliminate the consequences of speculation and overvaluation, and in our judgment only promises to make the fallout more severe. But we should generally expect the worst consequences to emerge at those points when speculative, overvalued, overbought, overbullish conditions are joined by increased risk-aversion, as evidenced by widening credit spreads or subtle deterioration in the uniformity of market internals. Those shifts are clearly evident here, and our immediate concerns could hardly be more acute.