The plane is in a spin.
It’s all a put-up job.
This is exactly what Latin American central banks used to do in the 60s and 70s. Right before their economies collapsed, they defaulted on their debts and inflation skyrocketed.
Gosh, what could go wrong?
“Investors”?? With what, fiat money?
Oh no!!!!
All in baby.
They stole this from ZeroHedge I believe. But it is interesting to see the word get out.
So that is who is artificially propping the stock market up! When the stock market crashes watch all those banks fall like dominoes.
Lotta people are gonna get hungry real fast and look for a saviour.
It’s sure to bring about the collectivist, world dictator sooner than not.
Their equity investments are generating good returns, so far, because their economies have been stimulated by the low interest rates that they have created, by their own government bond purchases (QE) and by the equity prices have risen because of their own purchases.
Purchase of equities by central banks has resulted in bureaucrats, government employees in all but name, picking winners and losers in the private sector. They will invest in a few blue chips, but, unlike private investors, will not search out smaller growth companies, will not support entrepreneurialism, invention and calculated risk. They are dispositionally incapable of this. In fact, we would not want them to be making these choices. Yet they are, but promoting low risk, low reward and discouraging risk-taking, all on behalf of the average citizen/investor/pensioner. Even worse, they are subject to political pressure in their decision-making. For example: banning investments in Israeli companies, investing in unwise solar energy ventures, etc.
Gradually at first and then faster toward the end, with increasing yield requirements from their governments, they will make unwise investments to "reach for yield". They will structure these investments in a complex manner so as to dress them up as "safe"for public consumption.
This is a giant incestuous circular self-propelled juggernaut that crushes rational investors under its wheels, but which is inherently unstable. By definition, like a gamblers formula, it will eventually fall apart, wrecking economic destruction upon us all.
It sure is getting easier and easier to crash the whole system.
Reminds me of this clip from the movie, “Sneakers.”
https://www.youtube.com/watch?v=coDtzN6bXAM