Reserve Banks: The Fall of the Market Gods ?

Posted: September 12, 2016 in Uncategorized

The Fed is drilling in the tightening decision and (from Jackson Hole) ask for more fiscal policy.

The ECB has a nothing to do meeting and call for more Government intervention. 

Bank of Japan is running out of bond.

And Bank of England prefer to have a wait and see.

That is outright scary.

This rally has been underwritten by the Reserve Banks (so.much so that a Deutche Bank study says that it accounts for 40% of the post 2008 rally)…if they leave the scene..all hell would break loose.

The last time they did it and missed it was 1938. The world plunged again into recession and was “saved” only by the Second World War.

I do not think they are that crazy, but we do not know the picture. They could really start to run out of ammo and need to put pressure on the politicians.

When Gods fall it is never pretty.

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