“Valuation models show risk asset prices well above fundamentals, raising the risk of sharp corrections,” it said. “Markets appear complacent as the ground shifts.” Investors and policymakers should be alert to the prospect of “disorderly” corrections and the potential for self-reinforcing doom loops, where a loss of confidence in the sustainability of government debt whacks the bond market, which in turn whacks risky assets priced for nirvana, which in turn hammers the banking sector, both traditional lenders and shadow banks that are locked in an embrace of “increasing interconnectedness”. The Bank of England struck a similar tone, noting the risk of a “sharp market correction”.