‘American central bankers have been signalling for two years that the crisis-era programme of vacuuming up bonds from the market, known as quantitative easing, would be wound up as the economy improved.’
Any program that goes on for as many years as Quantitative Easing, is no longer a temporary affair.
It is now permanent and any attempt to end it will cause the market will cause a massive crash. About six trillion dollars of funny money has been pumped into the market in the last Seven years. That constitutes about 7,000 points of the DOW average. Meaning the real value of the market is about 40% lower than the price reflects.
The Federal Reserve has pumped and pumped causing the largest bubble in history. The only question is when and how it will burst.
“...It is now permanent and any attempt to end it will cause the market will cause a massive crash....”
Your post summarizes what has been going on nicely. And it is shocking how many people do not even realize it. The Fool in the WH has been pumping money into Wall Street for so many years and the “value” of the market is just a fraud.
Many folks are moving out while the getting is good. I think we will see the exit trend rising soon.