Central banks becoming major investors in stock markets

Trader: “What The Hell Is Going On With Equities? Here Is The Simple Answer”

Confused about the market’s relentless melt up, if briefly slowed down by yesterday’s odd hiccup which saw the biggest intraday reversion in two years?

Don’t worry, you are not alone: as Bloomberg’s macro commentator and former FX trader, Richard Breslow writes, “all I heard yesterday morning was, “What the hell is going on with equities?”

In light of recent reports that pension funds – such as Norway’s, the world’s largest – and various sovereign wealth funds are becoming increasingly activist in stocks, in many cases with leverage, not to mention central banks such as the SNB which keeps buying and the BOJ which holds 75% of Japanese ETFs, the simple answer is staring everyone in the face….


… In the years since the financial crisis, central banks have leapt to the forefront of public policy making. They have taken responsibility for lowering interest rates, for maintaining stability of financial institutions, and for buying up government debt to help economies recover from recession.

Now it seems that they have become important in another area, too, in starting to build up holdings of equities….


This is the end-game of the central banksters.   They created the mega-bubble that they claim to be managing for our benefit, with the “side effect” of becoming outright owners of physical properties on a wholesale basis.   What’s to keep them from hanging on to such properties if and when their manufactured crisis has passed?  And since they can create currency out of nothing to infinity, there’s no limit to the amount of theft they can indulge in, all in the name of acting in the public interest.

Milton Friedman on the Origins of the Great Ripoff

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