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"We have major central banks around the world that continue to print money. These central banks buy assets with that freshly printed money. That means, stocks, bonds and commodities go higher."
"We have major central banks around the world that continue to print money. These central banks buy assets with that freshly printed money. That means, stocks, bonds and commodities go higher."
Wall Street has always been favored over Main Street even though they have a "I get mine first" mentality and "enough isn't enough".
I don't understand why the 1% would rather give philanthropically rather then through higher wages but until the tax code is changed to allow a better write off for their companies for wages than charity, it will continue
That's why tax code reform is so badly needed to vector the psychology of corporations to do what's not only best for their shareholders but also what's good for their employees and the country that they do business in.
The Central banks act as "Cat herders' to try to keep the collective international markets operating efficiently but like the title "Cat herder" implies, humans are hard to manage when it comes to money as greed, fear and the acquisition of power are so inbred into our psychological DNA that we become blinded to do what's right for humanity.
The bottom line is that the central banks act like the heart to keep the life blood of commerce flowing throughout the international markets as the lack of money will constipate the marketplace.
The question now is how cheap or expensive that money will be as the Central banks try to return to what used to be normal interest rates.
My advise to you is to learn how to swim in the economic tides of change because resistance will just wipe you out.
Last edited by NickofDiamonds; 02-12-2018 at 09:36 AM..
Of course trickle down works. When businesses are successful they create jobs.
Anyway, that has nothing to do with the post.
Central banks can create as much money as they want, and they can use it to buy stocks, to keep the stock market inflated. Does this seem like capitalism to you? No, me neither.
"We have major central banks around the world that continue to print money. These central banks buy assets with that freshly printed money. That means, stocks, bonds and commodities go higher."
Central banks do not print money. If you don't understand how central banks work, you might want to educate yourself.
"With central banks having the capacity to create money by decree anytime they want to, investment risk means little to nothing. Lose your money, it ceases to exist. In that case, just create more of it."
"As always, the central planners have the arrogance of the elite that causes them to think they have the brilliance to guide and control the markets of entire nations and even the entire world. How can anyone believe that such hubris will not end in total financial collapse?"
Of course trickle down works. When businesses are successful they create jobs.
Anyway, that has nothing to do with the post.
Central banks can create as much money as they want, and they can use it to buy stocks, to keep the stock market inflated. Does this seem like capitalism to you? No, me neither.
cen·tral bank
ˈsentrəl baNGk/
noun
plural noun: central banks
a national bank that provides financial and banking services for its country's government and commercial banking system, as well as implementing the government's monetary policy and issuing currency.
cap·i·tal·ism
ˈkapədlˌizəm/
noun
noun: capitalism
an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.
I think I can see where the definitions don't intertwine unless central banks are owned by private owners but it seems that central banks are chartered to service the governments monetary policy and issuing currency and not to generate profits for themselves like a regular bank would do for it's shareholders.
The central banks have been buying up stocks, with the money they create. This amounts to, eventually, nationalizing the companies whose stocks they buy.
So we are going in the direction of only having the illusion of a free market.
According to the article I linked anyway, and others I have read.
People don't seem to be aware of these theories. I think the theories sound very plausible.
90% of the article you posted is just plain nonsense from someone who has no knowledge. Your opinions are about the same.
US central banks are not legally able to invest in the stock market. If you have information that the banks hold US stocks, you should become a whistleblower and retire extremely rich.
About the only truth in this article, is the reference to US stocks owned by the Swiss National Bank. The $80B in holdings is a drop in the $25000B US stock market.
90% of the article you posted is just plain nonsense from someone who has no knowledge. Your opinions are about the same.
US central banks are not legally able to invest in the stock market. If you have information that the banks hold US stocks, you should become a whistleblower and retire extremely rich.
About the only truth in this article, is the reference to US stocks owned by the Swiss National Bank. The $80B in holdings is a drop in the $25000B US stock market.
That's the wrong way to look at things. That assumes that $80B could simply be withdrawn and you could calculate it's impact by subtracting $80B from $25000B.
If the SNB were to withdraw all their holdings at once, do you think it would be worth $80B or do you think only $80B of "value" would be lost?
That number is far more important than you think and what most large banks are concentrating on for their forecasts. Goldman recently released a report saying that they didn't think they could rely on Central Bank Asset purchases any longer and that the era of "buy the dip" might be over.
The reduction in balance sheets was the primary reason why Citi sees a 50% reduction in US equities by 2019.
Where will the demand come from if not SNB? What or whom will replace SNB?
What happens to prices when demand falls, regardless of P/E projections? None of that matters unless there is a buyer.
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