'Doctor Doom': US Treasuries now the 'mother of all bubbles'

'My biggest concern is that because of a weak economy, the budget and fiscal deficits will remain very high. With Mr Obama as President, there is a very good chance the deficit will go up and the government debt will expand and expand, until one day the interest payments on government debt will become unbearable.'

These are stong words from Schiff and Faber, but how much attention should investors pay to these notoriously gloomy commentators?

After all, some have argued that the crowded bond trade merely signifies a long term secular shift in investor behaviour, as heightened risk aversion causes them to back away from equities and into the supposedly safer haven of Treasuries. However, if Faber, Schiff and Ritholtz are right, could these investors merely be moving from the frying pan into the fire?