by Michael Krieger
One of the most catastrophic things central banks have done in the post financial crisis period is destroy financial markets. Investors are no longer investors, they’re merely helpless rats running around the lunatic central planning maze desperately attempting to survive by front running the latest round of central bank purchases.
While actual macroeconomic and corporate fundamentals do still exert influence on financial asset prices from time to time, the far bigger driver of performance over the past several years is central bank policy.
– From April’s post: The ECB’s Insane Monetary Policy is Creating a Rush Into Derivatives
If the following headline from a Bloomberg article published today doesn’t give you the chills, you aren’t paying attention.