by Lee Adler
Wall Street Examiner
Macroliquidity edged to a new high in the past week as the Fed held its regular monthly MBS settlements March 14-22. The markets must now fend without the Fed’s help again until mid April. But they have plenty of liquidity coming from the BoJ and especially the ECB as NIRP drives capital out of Europe and Japan into the US. US bank loan growth also contributes to deposit growth which means increasing liquidity available for the market.
The problem is that sentiment has undergone a slow shift toward greater skepticism of central banks to keep bull markets going, and therefore toward a more cautious and even negative stance on both stocks and bonds.